#5 - Nikola (NASDAQ:NKLA)
An emerging trend in the electric vehicle space is vehicle manufacturers attempting to control their battery supply chain. Nikola (NASDAQ:NKLA) is one example of this. The company has recently acquired Romeo Power, a company that went public via a special purpose acquisition company in 2020.
Romeo manufactures battery modules and packs for large electric commercial vehicles and Nikola was the company’s largest customer. To that end, Nikola says the acquisition could save the company $350 million over four years.
But the move is also intriguing because Romeo Power is attempting to create a battery that addresses two common obstacles for EV batteries. First, they are creating a battery with 25% higher energy density. This should allow a battery to go farther on a single charge. Second, the company is working on a design that will hold up in all weather conditions.
And Romeo Power is targeting their battery solution at commercial vehicles such as the electric trucks that Nikola makes. Having the backing of Nikola should help expedite the development of this battery design, which will give NKLA stock an additional catalyst.
About Nikola
Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector.
Read More - Current Price
- $3.93
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $33.33 (748.2% Upside)
