Is Nikola the Next Tesla? Investors Seem to Think It's Better
When Nikola Motor Corp. (NASDAQ: NKLA) went public earlier this month, it announced plans to begin producing its first battery-electric vehicles (BEV) in 2021, with production of hydrogen fuel cell electric vehicles (FCEV) set to begin in 2023. It's impossible to use traditional valuation metrics on a company that has yet to produce a product, but a comparison to electric vehicle rival Tesla's (NASDAQ: TSLA) path might be worthwhile.
Tesla's initial public offering (IPO) took place June 29, 2010. While Tesla was already manufacturing the Roadster sports car at the time, it was two years later that Tesla shipped its first Model S. In 2010, Tesla investors were betting on the potential for mass production of its BEVs when they valued the company at between $2 billion and $3 billion in the year leading up to initial production of the Model S. With Nikola approximately one year from its first planned product launch, the Nikola Tre BEV semi-truck, let's compare how investors are valuing Nikola's prospects from here.
Source Fool.com
