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So far, September has been a volatile month for Nikola equity investors (NASDAQ: NKLA). Following the announcement of a partnership with General Motors (NYSE: GM) on September 8, Nikola’s inventory first jumped more than 50%. here the news that short trader Hindenburg Research was accusing Nikola of fraud.
Recently, through Rene Bohnsack of the Catolica Lisbon school of business and economics and Ans Kolk at the University of Amsterdam concludes:
Sustainable mobility has long been a key factor in the automotive industry, following past climate change considerations, greater regulation and an ongoing desire to meet environmental requirements, as well as consumers who attach great importance to energy power and respect for the environment.
Nikola, founded in Phoenix, Arizona, specializes in electric and hydrogen trucks. On June 4, inventories are quoted at $37. 55. Within a week, Nikola’s inventory reached an all-time high of $93. 99. The immediate value accumulation follows the news that the company will start taking reservations for ‘Nikola Badger’, a new electric van.
The inventory is now approximately $42, once past earnings that followed the gm partnership announcement are abandoned. In other words, the initial percentage value of $37. 55 turns out to act as a magnet for action after an immediate increase.
The effects of the second quarter published in early August showed that Nikola has not yet begun advertising operations to produce his trucks, and has no benefit similar to electric vehicle operations. an initial production date at the end of 2022.
Under the agreement, GM will own 11% of Nikola. Il can also appoint a director. General Motors will design and manufacture batteries (electric and fuel cell) for the Badger truck. Nikola will pay GM for batteries and fuel cells, such as for truck outsourcing.
Despite the initial euphoria of investors over Nikola’s shares, analysts believe the deal benefits GM the most. In fact, Jim Cramer, host of CNBC’s Mad Money, believes General Motors is at the forefront.
Even before the publication of Hindenburg Research’s report on 9/11, the street also wondered whether the main points of the agreement meant that Nikola’s control had been too benefactor with his earlier claims that he had the generation to manufacture his electric vehicles. will probably remain in the news for some time, which can put pressure on NKLA’s actions.
The Street turns out to agree with Cramer. Since the announcement of the deal on September 8, GM’s stock has risen by about 5%. The news was well received by shareholders of General Motors’ shares, who have so far not had a smart 2020. Since the beginning of the year, GMO stocks have fallen by more than 14%.
Many analysts said GM’s efforts in the electric vehicle area were as hot as Tesla’s (NASDAQ: TSLA). As a result, this recent announcement of component participation makes sense as a component of management’s efforts to produce meaningful results. that GM can simply be part of its electric vehicle business, which would mean significant value to shareholders.
Readers of InvestorPlace. com possibly also say that “Cruise” is a self-sufficient driving entity partly owned by General Motors. Other owners come with Softbank (OTCMKTS: SFTBY) and Honda (NYSE: HMC).
General Motors occupies an emblematic position in our commercial history. Therefore, before making an investment in Nikola’s shares, market position participants may also need to exercise due diligence in GM’s actions. Stocks are rising in the coming quarters.
The recent exaggeration around electric vehicle inventories means that retail investors and daily investors look for those inventories on a daily basis. Many market players seem willing to bet that Nikola’s inventory may also be the next Tesla. However, the movements of this young company are volatile. Potential shareholders would likely see a point decrease of $30 or less as a larger access point.
If you are willing to invest in electric vehicles of choice in the long term, I think GM is an even more reliable option than Nikola.
You can also buy from a publicly traded fund. Examples come with the iShares Global Clean Energy ETF (NASDAQ: ICLN), ALPS Clean Energy ETF (CBOE: ACES) or SPDR S
At the time of publication, Tezcan Gecgil did not occupy (or occupy) any position on the values discussed in this article.
He has worked in investment control for more than two decades in the United States and the United Kingdom, in addition to his formal postgraduate studies in the field, he has also completed the 3 degrees of the Certified Market Technician (CMT) exam. These are operations based on the technical research of fundamentally solid companies. She likes to set up weekly covered calls to generate revenue. It also publishes educational articles on long-term investments.
Will Nikola Stock’s message continue to benefit from the GM partnership announcement?gave the first impression on InvestorPlace.