Nikola Corp stock closes in the red for nine straight sessions

Nikola Corp (NASDAQ:NKLA) stock closed negatively on Monday, extending its eight-day losing streak during which it lost about 24%.

Shares of the battery-electric vehicle manufacturer closed -6.82% at $7.38, close to its 52-week low of $7.02. The stock has lost 91.85% in value in the last 12 months.

Nikola has closed in the red for three trading days in August so far. During the month of July, it closed negatively for 12 out of 22 sessions.

Looking at Seeking Alpha’s Quant Ratings, the Phoenix, Arizona-based manufacturer has a Strong Sell rating with a score of 1.45 out of 5. The company received an F for profitability and a B- for its growth prospects. The stock also got a B- for its valuation compared to a B six months ago.

Turning to the Wall Street community, about 5 out of 8 analysts in the last 90 days gave the stock a Hold recommendation, with 3 analysts recommending a Buy or higher.

Seeking Alpha analysts are wary and gave the stock a Sell recommendation.

In early July, the company said through the HYLA brand, the firm has delivered 72 Class 8 Nikola hydrogen fuel cell trucks to wholesalers in Q2, crossing the high end of truck sales guidance of 60 units.

“Despite some progress in restructuring, Nikola’s profitability remains a concern due to high production costs and limited market potential for fuel cell electric vehicles,” reads a report by Seeking Alpha analyst Dilantha De Silva.

Another Seeking Alpha analyst, Henrik Alex, noted that recent changes in the company’s go-to-market strategy are likely to result in increased cash burn. The report also added that even at the current rate of cash usage, Nikola would be required to raise additional capital in the second half of the year.