Nikola set for seven straight sessions of losses

Shares of Nikola Corporation (NASDAQ:NKLA) were on track for their seventh straight session of losses on Wednesday, as the stock fell more than 5% to $3.05 in afternoon trade.

The Arizona-based electric vehicle company, lost more than 26% in the preceding six trading sessions. The stock has lost more than 88% so far this year, compared to an over 21% gain in the broader S&P 500 Index.

NKLA is down 32% over the past one month. The stock closed 2.43% lower on Tuesday, at $3.21.

Nikola, last week, reported weak results, missing third quarter revenue and EPS estimates.

Seeking Alpha’s Quant rating, reflecting on the weakness, has rated Nikola stock a STRONG SELL, with a score of 1.08 out of 5. The company has received a B+ on valuation, and an F in terms of profitability and momentum.

Among Wall Street analysts, 3 out of 8 analysts recommend BUY and above, 5 recommend to HOLD the stock, while none recommend selling.

Seeking Alpha analysts are also bearish and have rated the stock as a SELL.

Seeking Alpha analyst, Henrik Alex, pointed out that Nikola (NKLA) has continued to burn substantial amounts of cash, adding that we might be approaching the final chapter of Nikola’s efforts to commercialize zero-emission trucks.

“With funds running low again and raising sufficient capital becoming increasingly difficult, Nikola might be out of viable financing options by the end of next year already.

Until then, I would expect the company to aggressively sell newly issued shares into the open market in order to make it into 2025.

As a result, the stock price is likely to mark new all-time lows sooner rather than later,” Alex added.