Why Nikola Shares Dropped Today
Nikola (NASDAQ: NKLA) made an announcement yesterday that might have had investors buzzing on any other trading day. But that wasn't the case today, with Nikola shares near Friday's lows closing in on the final trades of the day. As of 3:20 p.m. ET, Nikola stock was off 7.2%.
Of course, the news of the day that triggered a market sell-off was the monthly inflation data. While some expected May data to show some goods and services to have reached peak inflation, the consumer price index (CPI) data instead showed inflation rose to the highest level in 40 years. That drove all stocks lower, but hit growth stocks that are priced based on potential future earnings especially hard.
Nikola falls squarely in the growth stock category, as it just recently began bringing in any meaningful revenue. But as the company begins to ramp up production of its battery electric heavy trucks, Nikola says it expects to achieve deliveries of between 300 and 500 vehicles this year. That would represent revenue of between $90 million and $150 million.
Source Fool.com
