Nikola: Bleeding Edge

 

  • Nikola generally hit financial and production targets during Q2'22 setting the stage for the next phase of the business.
  • The BEV manufacturer continues to burn $50+ million a quarter, quickly depleting current liquidity likely below $800 million now.
  • The stock is a Buy once securing additional financing at favorable terms.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
Most of the market probably doesn't even realize that Nikola (NASDAQ:NKLA) has started delivering BEV trucks. The company once appeared a scam to some, but new management has shockingly built out most of the original business plan. My investment thesis is still Neutral on the stock due to the need to raise capital and obtain more truck orders to solidify the valuation.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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