Why Former Market Darling Nikola Stock Has Been Nearly Cut in Half Since the Beginning of March
Shares of electric vehicle (EV) start-up Nikola Corporation (NASDAQ: NKLA) dropped 45.5% in value in March, according to data provided by S&P Global Market Intelligence. The company reported financial results in late February which, while showing progress, pointed to a long road ahead toward profitability. And it closed out March with a reminder that cash is still needed for Nikola at this time.
Early in March, Nikola stock was dragged down by market conditions. It was in early March that SVB Financial experienced its historic collapse. Nikola never disclosed having funds at SVB. However, it was a time of market uncertainty. And shares of start-ups like Nikola were disproportionately affected at the time, as investors seemingly questioned where companies had their cash.
Cash flow was also on investors' minds in March. For context, Nikola's management had said it would deliver 300 to 500 of its Tre BEV semi trucks in 2022. However, it reported in February that it only delivered 131 to dealers. And lower-than-anticipated deliveries was partially to blame for the company's substantial gross loss of $105 million for the year.
Source Fool.com
