#4 - Nikola (NASDAQ:NKLA)
Electric vehicle (EV) stocks have been red hot in 2020. And there’s a good reason for that. With the possible exception of 5G, there’s no market in which the United States is trying to achieve dominance in the EV market. The sector took steps forward, even with the benign neglect of the Trump administration. Now it has a champion on Pennsylvania Avenue.
However, not all EV stocks get to go to the moon. And for me, Nikola (NASDAQ:NKLA) fits that category. I’m generally not a fan of companies that have a whiff of accounting shenanigans. And Nikola has had that. But there’s a more fundamental reason to not invest in the stock. The company’s fortunes depend on a $2 billion partnership with General Motors (NYSE:GM).
But in a recent interview on Jim Cramer’s Mad Money, Nikola would not confirm that a deal is forthcoming. And the company would not squelch concerns that the company’s founder Trevor Milton will sell all or part of his 91.6 million shares when a lock-up period ends on December 1.
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
- $2.01
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.00 (498.0% Upside)
