Why Nikola Stock Is Tanking This Week

Good news for electric vehicle start-up Nikola (NASDAQ: NKLA) has been trickling out over the past couple of weeks. But that hasn't kept its stock from being pummeled along with many other speculative and growth companies in the tech sector. In this week alone, as of Friday morning, Nikola shares had dropped by more than 24%, according to data provided by S&P Global Market Intelligence.

Nikola continues to announce progress in its business plans, so the recent sell-off in the stock doesn't seem to be directly related to the company itself. The tech-heavy Nasdaq Composite Index is now in correction territory, having fallen by more than 11% from recent highs. Many speculative and growth-dependent companies have fallen even further than the overall index. Nikola is one of them, even as its business is making headway. It recently shipped its first battery electric semi trucks to customers, and has made multiple announcements about deals with potential new customers.

Image source: Nikola.

Source Fool.com