Nikola, a company that makes hydrogen fuel cells and electric trucks with batteries, has just been released. Its stock has more than doubled in recent days. And Nikola’s president is bragging about it on Twitter.
Its shares Nikola
– the first name of the famous inventor Tesla – have more than 120% since he completed the merger with an already public shell company under the name VectoIQ on June 3.
The stock rose 103% on Monday alone, although it fell 22% early Tuesday morning in volatile trading with wider market
before bouncing back. The shares of Nikola finished the day with a profit of 9%.
Shares of Tesla, which also hit record highs recently, closed at 1%.
Monday’s meteorological gains came after founder and CEO Nikola Trevor Milton issued a series of tweets
pre-orders for the company’s Badger truck. Shares rose 27% on Tuesday before falling.
Nikola began trading under that name last week after reaching an agreement with VectoIQ – a special purpose redemption company (SPAC) without its own assets created solely for merging with a private company seeking to be made public. (Richard Branson Virgin Galaxy (SPCE)
and sports / fantasy betting company Designs
Both have recently been made public in this way.)
VectoIQ, which changed its name to Nikola and the NKLA price last week after the merger, has already risen more than 600% in 2020 – with most of that profit coming after Nikola’s announcement to buy it. VectoIQ in March.
Nikola, who also makes semi-trucks, is now worth about $ 26 billion based on Monday’s closing price, although he is not expected to generate sales – let alone gains – by 2021.
This makes the company more valuable than Passage (eat)
and Fiat Chrysler (FCAU)
and it arrives quickly GM (GM)
– an event that Milton boasted about on Twitter on Monday, saying, “I want to say it all my adult life. NKLA $ is now worth more than Ford and FCA.
Nikola has already announced sales to large customers, including ordering 800 trucks from Budweiser brewery Anheuser-Busch InBev (BUD)
and ordering several million dollars with a loader US Xpress Enterprises (USX)
The company has also landed some of the industry’s top talent as it seeks to take over Tesla (TSLA)
, which plans to launch an electric semi and futuristic Cybertruck. Nicolas announced last week that former GM vice president Stephen Girsky, who was CEO of VectoIQ, is now a board member.
One of Nikola’s top investors is CNH (CNHI)
, a global industrial group that manufactures tractors, buses and construction equipment. CNH said Monday that the subsidiary of IVECO commercial vehicles now owns 7.1% of Nikola.
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