About Nikola Corp (NKLA)

Nikola Corporation is an American company that designs and manufactures battery-electric and hydrogen fuel cell electric trucks. Established in 2015 and based in Phoenix, Arizona, the company aims to revolutionize the trucking industry with zero-emission transportation solutions.

In June 2020, Nikola went public via a reverse merger with VectoIQ Acquisition Corporation (VTIQ), a publicly traded special purpose acquisition company (SPAC), achieving an enterprise valuation of $3.3 billion. You can find Nikola’s stock on the NASDAQ under the ticker NKLA.

Some of the notable achievements of Nikola are:

• Unveiling prototype models of the Nikola One and Two semi trucks in 2016 and 2019.
• Breaking ground on its first commercial hydrogen station in 2019.
• Forming a technical collaboration agreement with General Motors in 2020.
• Starting test production of the Tre battery electric truck in 2021.
• Delivering its initial Tre models to customers in 2022.

Despite facing controversies over overstated technological capabilities and order volumes, Nikola aspires to be a global leader in zero-emissions transportation. The company delivered over 250 Tre BEV trucks in 2022, and plans to deliver up to 350 Tre BEV trucks by the end of 2023, with a goal of 500 trucks by 2024.

Nikola (NKLA) Historical Performance

Nikola debuted on June 4, 2020, through a reverse merger with VectoIQ Acquisition Corp at an initial share price of $33.94.

Now, If we look at the first few months, the stock experienced significant volatility, quickly soaring past $90 per share by June 2020. This early spike in the value was largely driven by the hype and retail investor interest in pre-revenue EV startups. Also, Nikola’s dual focus on battery electric and hydrogen fuel cell trucks helped set them apart in the EV industry.

However, the situation changed in September 2020 when short-sellers accused the company of making misleading claims. This accusation led to a sharp drop in the stock value, taking it below $20 per share. Following these allegations, Nikola’s founder, Trevor Milton, stepped down, and investigations began.

With no revenue and rising doubts about its execution capabilities, Nikola’s stock value continued to decline throughout 2021, even falling below $10. Although there was a brief increase in value when the company delivered its Tre EV trucks, but, a broader market crash caused the stock to fall again in 2022, which took the stock value around $2.

Here are some events that influenced the Nikola stock.

1. September 2020 – The share price plummeted over 60% from its peak following a damning short-seller report.
2. March 2021 – NKLA declined 15% after GM opted not to take an equity stake as initially agreed upon.
3. July 2021 – The stock dipped 16% when Nikola abandoned its electric pickup truck project.
4. October 2022 – Shares surged 30% after Nikola delivered its first Tre trucks to customers.

Nikola Price History

Below is the price history of Nikola stock from November 2022 to October 2023, providing a comprehensive view of the stock’s performance over the year.

Nikola (NKLA) Financials & Earnings

Nikola Corp has a market capitalization of $1.27 billion as of October 2023. This shows that investors are optimistic about its future, even though it hasn’t made much money yet. In the last 12 months, Nikola earned $56.84 million, mostly from from solar installation projects and energy storage systems. However, the company registered a negative gross profit of -$104.76 million during this period.

Right now, Nikola spends a lot more than it earns. Its operating margin is -982.35%, which means its costs are much higher than its earnings. Also, its earnings per share (EPS) is -$1.45, showing that it’s not making any profit. Also, its return on equity (ROE) is -132.55%, suggesting that it is not utilizing shareholders’ funds properly to generate returns.

These numbers might look bad, but it’s normal for new companies and startups like Nikola. They are focusing on growing, not making profits right now. As Nikola starts selling more electric and fuel-cell trucks trucks, they would start making more money. As of now, Nikola faces various challenges in the EV market, but there’s a chance for it to do better in the future.

Here, we have compared the financial details of Nikola Corp (NKLA) for the years 2023, 2022, and 2021 to provide you a better understanding of company’s financial health over the years.

Nikola (NKLA) Stock Forecast & Price Prediction

According to the short-term forecast, Nikola price can reach $1.82 by the end of 2024 and then $2.23 by the end of 2025. Also, If we take a look at long-term forecast, Nikola can hit $3.03 within the year of 2027 and around $5 in 2030.

Nikola Stock Forecast & Price Prediction 2023-2025

For the years 2023 and 2024, Nikola’s stock is projected to see a steady rise. In 2023, the stock is expected to target $1.17, with an average price of $1.37, peaking at $1.62 and potentially dropping to $1.02, marking an increase of +8.24%. And, By 2024, the stock’s target price is predicted to be $1.27, averaging at $1.52, with a high of $1.82 and a low of $1.12, indicating a growth of +18.36%.

Well, this short-term forecast can be seen due to company’s strategic moves in hydrogen sector. Nikola’s focus on its hydrogen vision became evident when the CEO announced the upcoming start of fuel cell electric truck sales. Also, the company recent introduction of hydrogen-powered trucks shows its dedication to pioneering in the FCEV sector.

Nikola Stock Forecast & Price Prediction 2026-2030

For 2025, forecast suggest Nikola’s stock price will reach $1.42, averaging around $1.77, and fluctuating between $2.23 and $1.27. This indicates a significant growth of +32.48% from 2023.

This upward trend is expected to continue through 2028, with the stock potentially reaching $2.18. Average prices might settle around $2.78, with peaks at $3.53 and occasional lows of $2.03. This suggests a notable increase of +103.84%.

Several strategic moves and partnerships are expected to drive this positive trajectory. In 2023, Nikola announced its expansion into Canada through a partnership with ITD Industries Inc., which can broaden Nikola’s global reach. Plus, BayoTech’s decision to purchase 50 Nikola’s FCEVs over five years, signals growing trust in Nikola’s fuel cell operations. We know that this deal might not drastically impact immediate revenues of the company, but, it highlights the growing faith in Nikola’s FCEV business and its future prospects.

Nikola Stock Forecast & Price Prediction 2030-2050

By 2030, long-term forecast indicates continued growth for Nikola. The stock might reach $2.53 in 2029, averaging around $3.28, with highs of $4.28 and occasional lows of $2.38. This suggests a sharp increase of +136.92% from 2028.

In 2030, the stock’s target price is expected to be $2.93, with averages around $3.78, highs of $5.03, and lows of $2.78. This indicates a significant growth of +174.56% by the decade’s end.

This positive outlook can by Nikola’s R&D initiatives, strategic partnerships, and alignment with global sustainability trends. As the global shift towards zero-emission transportation continues, Nikola’s leadership in hydrogen fuel cells could significantly influence its long-term stock performance.

Nikola Stock Forecast & Price Prediction 2040

By 2040, predictions suggest Nikola’s stock will surge to $5.53, averaging around $7.03, with a potential high of $9.03 and a low of $5.03. This indicates a remarkable 20-year growth of +419.81%, underscoring the company’s vast potential in zero-emission vehicles. Also, Nikola’s technological advancements and partnerships over the next two decades, could drive this significant growth.

Nikola Stock Forecast & Price Prediction 2050

By 2050, Nikola’s stock might soar to $10.03, averaging about $12.53, with highs of $15.03 and lows of $10.03. This suggests an impressive 30-year growth of +844.34% by mid-century.

Nikola’s long-term vision, innovations, and global footprint could play a crucial role in this positive forecast. Additionally, the company’s leadership in hydrogen fuel cells and dedication to sustainability are expected to anchor its potential success by 2050.

Nikola Stock: Buy, Sell, or Hold?

Based on the latest analyst consensus, Nikola Corp holds a “Hold” rating. The average recommendation is 3.29 out of 5, suggesting a cautiously optimistic perspective on Nikola’s future potential.

Among the analysts providing ratings:

• 1 analyst gives Nikola stock a “Strong Buy” rating, highlighting the company’s long-term growth prospects.
• 6 analysts recommend a “Hold” rating for now, suggesting investors wait for clearer signs of progress.
• No major analysts currently assign a “Sell” rating, reflecting confidence in Nikola’s vision and market opportunity.

The solitary “Strong Buy” rating indicates investors’ belief in Nikola’s potential. He thinks that the company can make a significant impact in the electric truck market in the coming years.

However, the majority of analysts maintain a neutral “Hold” position, which means that they are awaiting clarity on issues like manufacturing, partnerships, and sales. While Nikola’s commitment to zero-emission transportation is promising, analysts advise patience as the company navigates challenges in production scaling and the development of its hydrogen fueling infrastructure.

For risk-tolerant investors, Nikola might appear as a good value, especially after its notable decline from 2021 peaks.

Nikola (NKLA) FAQs

Is Nikola Stock a Good Buy?

At current levels, Nikola stock presents a speculative buy opportunity primarily for risk-tolerant investors. The company’s ambitious vision for hydrogen-electric transportation points to a large addressable market. However, the Wall Street Analysts suggest to hold since the company remains in the pre-revenue stage and faces immense challenges in scaling up manufacturing and rolling out its refueling network.

What are the Pros and Cons of Buying Nikola Stock?

Pros:

• Hydrogen-electric truck market pioneer.
• Technological innovation with growth potential.
• Strategic partnerships and current low valuation.

Cons:

• No current revenue or profits.
• Ambitious production targets.
• New competitors and management changes.
• Past controversies affecting trust.

Will Nikola Stock Price Go Up in 2023?

Nikola stock may recover in 2023 with pre-order expansion, test drives, and partnerships. According to 2023 forecast, the stock is expect to grow by 8.24% by the end of 2023.

How to Buy Nikola Stock?

You can buy Nikola shares through online brokers like Fidelity, Charles Schwab, or E*TRADE. But, I would recommend to go for Robinhood, a commission free investing app, that doesn’t charges you to buy stocks, cryptos, ETFs, etc. Another better option is eToro.

What Will Nikola Stock Be Worth in 5 years?

Nikola stock might reach $3 by 2028, a 3 times potential increase. However, its growth depends on partnerships, and the hydrogen market’s evolution.

Does Nikola Pay Dividends?

No, Nikola does not offer a dividend. The company is still pre-revenue and investing available capital into manufacturing expansion.