Nikola Motors (NASDAQ: NKLA), the electric truck company that has been around since the early 2000s, has been making waves lately. The stock is rising, and it's not because of Elon Musk's involvement with the company—something is happening here.
Why it matters: This news comes as rival Tesla is preparing to deliver its first electric pickup early next year.
What's responsible for the recent big waves?
Without mincing words, Nikola's (NASDAQ: NKLA) stock is rising because the company is making more trucks. The company expects to be profitable by 2025 due to its semi-truck production, which started in 2019.
The most important thing here: It's not because they're selling more electric vehicles (EVs) or even just using better materials to make their products—they're making them! This is a big deal. It's a big step for Nikola, and it's also a big step for electric trucks (and all their competitors).
For Nikola, it means they can finally compete with other truck companies in terms of price, range, and performance. They have been saying that they could do this with their hydrogen fuel cells, but now they have proof that they can pull it off — albeit without any customers yet!
Profit, even for the future
Nikola is poised to make profits on its trucks. The company expects to be profitable by 2025 due to its semi-truck production. Its stock price has risen since then, as well.
Nikola's Tre model was sent to customers in Europe, and two battery-powered Badger prototypes were sent to key stakeholders in North America, according to a blog post published by the company.
The Tre is a hydrogen-powered vehicle that can travel 1,000 miles on a single fuel tank. It weighs less than 2 tons, has an eight-meter cargo bed, and seats up to eight passengers—two in the rear seats and six more in the front cabin. The company says it will cost $60 million when it goes into production next year at its plant in Fremont, California (about 30 minutes south of San Francisco).
The second prototype is called the "Badger," an all-electric vehicle developed with General Motors (GM). It will range 500 miles between charges based on today's technology standards. Still, if necessary, it could be extended significantly further through future developments, such as improved batteries or more substantial materials for structures like frames and axles.
A good investment now – definitely yes.
If you're looking for a stock, Nikola Motors has been on the rise lately. The company is making more trucks and achieving profitability shortly, which means an increase in its stock price. If you loved Nikola when it was selling at $15, then it is currently at a giveaway price.
Nikola Motors may have been around for a while, but it is currently living up to expectations. Earlier, Nikola's stock dropped by nearly 50%. This reflects how volatile this industry can be and speaks to how much potential there is for growth in this space! For Nikola to get back to its past highs, it needs to start producing more EV trucks and raking in profit. That's what Nikola wants to start doing now, and they're set to achieve that.
Conclusion
Will Nikola's stock (NASDAQ: NKLA) continue rising? Well, it's too early to tell for sure. The company has been making a lot of semi-trucks, and they're doing this because they plan on being profitable by 2025. This means that investors should focus on the stock rather than where it goes from here in the short term because there are still many unknown factors involved with investing in any company like Nikola.
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