Why Nikola Shares Dropped Today

Investors are shunning electric vehicle stocks today, and Nikola (NASDAQ: NKLA) is no exception. Much of today's negative momentum looks to be from the financial update that electric car maker Lucid Group provided investors yesterday. Investors may fear that some of what Lucid said regarding supply chain troubles will apply to others -- especially start-ups like Nikola. Nikola shares were down 5.4% today, as of 1:42 p.m. ET.

But Nikola reported its quarterly update last week, and it was received well by investors. The company is in a completely different niche from Lucid, and Nikola is currently focusing on pilot testing programs with potential customers, which seem to be going well. 

Image source: Nikola.

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Source Fool.com