Down 46% year to date, electric truck maker Nikola (NASDAQ: NKLA) has missed the market rally that boosted electic vehicle peer  (up 153% in the same period). This comes as the smaller company grapples with production issues and weakening financials. Let's dig deeper to explore whether or not Nikola's future will be brighter than its past. 

Nikola hit public markets through a reverse merger with a special purpose acquisition company (SPAC) in June 2020. Initially, shares performed well -- eventually soaring to an all-time high of roughly $80 that same year. At the time, investors were optimistic about Nikola's prospects of rapidly scaling up production of its trucks and batteries, along with its hydrogen fuel cell technology, which promised the potential for higher ranges and faster fueling times compared to traditional electric vehicles (EVs). 

Since then, Nikola shares have collapsed over 98% as it continues to be wracked by operational underperformance and scandals. For example, in 2022, former CEO Trevor Milton was found guilty of making fraudulent statements about the company's technology to jack up its stock price. And it has changed leadership a whopping four times in four years.

Continue reading

Source Fool.com