Nikola Stock: Pain Will Not End Soon


  • Last September, I warned investors of betting on Nikola Corporation, as I thought the company was disadvantaged compared to pure-play BEV truck manufacturers.
  • 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.
  • Nikola is losing money on each truck sold. The average production cost of a Nikola truck was $679,000 in Q4 2023 while the ASP was just $351,000.
  • Under normal circumstances, I would not be alarmed by a young company selling a product at a loss to gain market share. However, when it comes to Nikola, this is a bigger problem than it seems.

Electric truck Nikola on a street


Nikola Corporation (NASDAQ:NKLA) has wiped millions of dollars’ worth of investor money since its market debut in June 2020. The company has lost more than 95% of its market value since the IPO (adjusted for the reverse split), and even more

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