Nikola: Improved Results, But Not Enough To Make It A Good Investment

Summary:

  • Nikola Corporation reported record revenue for Q2, while beating guidance. That resulted in a slight positive move in the stock price to end last week.
  • NKLA’s economics are nowhere near viable at the moment. The higher production it achieves, the greater the net loss in a near-linear fashion.
  • NKLA has two quarters of cash remaining. It will dilute more this year.
  • At the current burn rate and market cap, investors can expect 100% dilution each year until the burn rate significantly improves.

Rolled Over Semi-truck

Arthur Kaszuba/iStock via Getty Images

Nikola Corporation (NASDAQ:NKLA) announced its Q2 results last Friday. Investors were pleased with the results, sending the stock up 8%. My repeated strong sell calls at the peak of its hype in


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