It is among the closest competitors of the world’s largest and well-known zero-emissions transportation systems provider Tesla (NASDAQ: TSLA). Tesla has better market share and infrastructure then Nikola. Despite a small size, Nikola has been looking to expand its market share through the introduction of new vehicles and accelerating its presence in global markets. The shares rallied sharply since electric heavy-truck maker Nikola begun trading on the Nasdaq following its merger with VectoIQ (VTIQ). Nikola stock is currently trading around $38. Positive commentary from market analysts has added to Nikola stock price performance. Cowen analyst Jeffrey Osborne said, “We see Nikola as an intriguing investment opportunity, leveraging one truck platform, 2 power train options, and 3 business segments, with optionality in powersports, pickups, and AVs.” Although JP Morgan claims that Nikola shares are fully valued, the firm sees strong future fundamentals for this zero-emissions transportation systems provider. Meanwhile, Deutsche Bank suggests investors buy the dip following the massive selling pressure in the past few weeks. Deutsche Bank analyst Emmanuel Rosner believes that Nikola is an exceptional play on zero-emission commercial trucks. He also predicts strong zero-emission transportation adoption in the coming years. The latest selloff is only due to investors’ concerns about stock sales related to warrants. It filed to offer up to 23.9M shares. The filing also shows future plans of selling up to 53.39M of common stock and around 890,000 warrants. The company has originally issued private warrants in a private placement tied to the IPO of VectoIQ.
