NKLA - Why Nikola Stock Pared Big Early Gains Today
2024-06-26 15:54:26 ET
Big news in the electric vehicle (EV) sector led to gains in several names today. Electric heavy truck maker Nikola (NASDAQ: NKLA) was one of them. Shares jumped as much as 16% in early Wednesday trading.
The stock lost most of those gains, but still traded higher by 3.4% on the day as of 3:30 p.m. ET. There were two news items that investors were likely balancing as they traded shares in the struggling EV stock today.
The initial surge likely came as investors in the EV sector digested news that global auto giant Volkswagen was investing up to $5 billion in fellow EV maker Rivian Automotive . Start-ups like Rivian and Nikola have scrambled to raise capital and lower costs as they have worked to ramp up production. That investment could be just what Rivian needs to hold it over until it begins producing and shipping its next lineup of EVs that could spur sales in a big way.
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Why Nikola Stock Pared Big Early Gains Today