Nikola: Making Progress, But Lacks Capital
As someone ultra bearish on (NKLA) after the company went public via a SPAC to an irrational valuation, my view is now more neutral on the stock. The BEV company has made substantial progress towards becoming a legitimate manufacturer of trucks. Ultimately though, my investment thesis is neutral on the stock as the current price is still over 9x 2025 sales targets.
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Update - July 29
No surprise the former CEO is being charged with fraud. The surprise is that the stock is down 11% on this news possibly providing a part of the bottoming process. The current Nikola is nothing like the old Nikola under Trevor Milton.
Update - June 14
Interesting deal to raise some capital here. Nikola needs far more than $300 million so this deal is only a start keeping us on the sidelines for more capital raises.
-Shares of Nikola are down in premarket trading Monday after the company strikes a deal to sell up to $300 million worth of stock to Tumim Stone Capital.
The stock continues making a base with a retest of $15 or below likely.