NKLA - Nasdaq Sinks 90; Nikola Workhorse Signal End of EV Run-Up
Tuesday brought an intraday reversal to the stock market. The Nasdaq Composite (NASDAQINDEX: ^IXIC) jumped out to a solid gain by the middle of the day, but by the end of the session, the index was down almost 1%. The Nasdaq 100 saw similar declines, motivated in large part by calls from major players on Wall Street that the stock market's huge rebound from the March lows might have gotten ahead of itself.
One part of the market that has seen plenty of froth has been the electric vehicle (EV) industry. Although leader Tesla (NASDAQ: TSLA) managed to gain more ground today, newer players like Nikola (NASDAQ: NKLA) and Workhorse Group (NASDAQ: WKHS) suffered substantial declines. That has investors wondering if the momentum-based trading strategies that have worked so well lately could now be coming to an end.
Nikola saw its stock drop 18% on Tuesday, building on losses from Monday's session as well. Today's drop came as stock analysts started to pile on against the electric truck specialist.