GM - Is Nikola Stock a Buy Now?
Nikola (NASDAQ: NKLA) has taken investors on a wild ride over the past two years. The electric truck maker went public by merging with a special purpose acquisition company (SPAC) run by General Motors ' (NYSE: GM) former vice-chairman Steve Girsky on June 3, 2020, and the combined company's shares opened at $37.55 the following day.
Less than a week later, Nikola's stock surged to an all-time high of $79.73, which valued the company at a whopping $28.8 billion -- even though it hadn't delivered a single truck yet. Instead, it traded on its ambitious target of delivering 7,000 BEV (battery-powered) and 5,000 FCEV (hydrogen-powered fuel cell) trucks annually by 2024. It also planned to operate a network of 24 hydrogen charging stations that year. Based on those bullish estimates, Nikola management claimed the company's revenue could hit $3.2 billion in 2024.
Image source: Nikola.
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Is Nikola Stock a Buy Now?