Is Nikola Stock a Buy?
Shares of electric heavy truck start-up Nikola (NASDAQ: NKLA) rocketed more than 110% higher in the first three weeks of June. But that came after the stock had plummeted as investors fretted about the future of the company.
Nikola has reacted to the situation by making a strategic adjustment, raising fresh capital, and streamlining its workforce. Those are some of the catalysts that caused or aided the stock's recent surge higher. The question for investors is whether the stock has bottomed and if the business moves now make Nikola stock a buy.
Nikola's plan was to become the leader in converting the class 8 heavy truck segment to electric. The company initially took a two-pronged approach. It was first going to build and begin delivering battery-electric semitrucks. As that business grew, Nikola would be working to finalize its hydrogen fuel cell-powered versions and ultimately could offer whichever model better suited customer needs. But that strategy turned out much more complicated than the company planned.
Source Fool.com
