Why Nikola Stock Was Cut in Half in August
Start-up electric heavy truck maker Nikola (NASDAQ: NKLA) didn't have all bad news in the month of August, but it seemed like it to investors. A string of troubling news and updates led to a drop of nearly 56% in Nikola shares last month, according to data provided by S&P Global Market Intelligence.
Last month's crash came after Nikola stock had marched higher throughout June and July as the company began generating meaningful revenue and made moves to solidify its financial position. Nikola sold its Arizona hydrogen hub to Australia-based Fortescue Future Industries (FFI) to help lower its capital spending requirements and bring in needed cash, and it announced other partnerships for hydrogen supply and fueling infrastructure. The company also announced an agreement with J.B. Hunt Transport for the sale of 13 Nikola electric trucks to the well-known trucking company.
But the tide turned in August for the company and its stock. After an independent third-party investigator released a preliminary report on a previously announced truck fire, Nikola said it would recall 209 of its battery-electric trucks. A coolant leak in a battery pack component was identified as the likely cause of the fire.
Source Fool.com
