Sun, May 19, 2024

How Nikola Corporation Surpassed World-Famous Automaker Ford

Shares of Nikola Corporation

Tesla is one of the most famous automakers in the world. However, Tesla is not the only successful company that bears the name of inventor Nikola Tesla. Another one is Nikola Corporation. Interestingly, as in the case of Tesla, Nikola Corporation also makes battery-electric trucks. Moreover, it also makes hydrogen-electric trucks.

Notably, shares of Nikola Corporation jumped more than 20% on Tuesday shortly after the open, before reversing course and falling more than 20%. However, at that point, trading was paused for volatility. Nevertheless, the stock closed 8.8% higher, thanks to Monday’s surge which saw shares more than double.

As a reminder, the company began trading on June 4 following a reverse merger with VectoIQ. It is worth noting that, VectoIQ is a publicly-traded special purpose acquisition company. The head of VectoIQ is the former vice chairman of General Motors Stephen Girsky. 

Nikola Corporation and its new car Nikola corporation and various factors

 Based on Tuesday’s closing price Nikola Corporation became more valuable than world-famous automaker Ford. This information came from the FactSet. 

As of June 9, the value of the electric vehicle maker was $28.799. At the same, Ford’s market cap was $28.794 billion.

Moreover, part of Monday’s surge was due to CEO Trevor Milton announcing a reservation date for the Nikola Corporation’s upcoming Badger truck. 

Interestingly, the history of the Nikola Corporation dates back to 2015. Moreover, it doesn’t expect to generate revenue until 2021. Nevertheless, investors are willing to invest in companies that promise vehicles of the future. Moreover, Tesla has yet to turn an annual profit, but shares of Tesla jumped 127% in 2020. 

Electric vehicles step-by-step became part of everyday life. Moreover, due to climate change, it is harder and harder to produce cars equipped with internal combustion engines. As a result, more and more companies started to invest in electric cars. 

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