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HomeFinance NewsNikola Corp's Share Prices Skyrocketed This Week

Nikola Corp’s Share Prices Skyrocketed This Week

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Shares of Nikola Corp. (NKLA) surged 36% this week as the hydrogen fuel cell transportation company finally entered commercial production for its semitrucks after significant delays. Despite the jump in stock price, shares remain down 98% from their all-time highs. This positive development comes after a tumultuous period for Nikola, including a scandal involving its founder, Trevor Milton, who was exposed for faking product videos and misrepresenting the company. With Milton out of the picture and a new management team in place, Nikola aims to bring its hydrogen fuel trucking concepts to market.

The recent milestone of entering commercial production for its semitruck concept spurred investor optimism. Nikola has already received 223 orders from commercial customers interested in its hydrogen fuel trucks, although this still represents a small fraction of the overall semitruck market in the United States. While Nikola has been producing electric vehicles, it also aims to focus on hydrogen-powered vehicles, positioning itself uniquely in the transportation industry. However, the company still faces significant challenges in terms of achieving profitability, as it shipped only 76 trucks in the second quarter, resulting in negative gross profit and operating loss.

Despite the positive news of entering commercial production, Nikola’s financial struggles and negative operating margin suggest that it will take many years for the company to turn the situation around. Investors are advised to exercise caution and stay away from Nikola stock until the company can address its financial challenges and demonstrate a path to profitability.

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