Nikola Stock (NASDAQ: NKLA)
First Published date: 3. October, 2022Last Updated: 23. November, 2022Fact-checked by Adrian Müller
The electric vehicle industry is starting to get attractive. Most people are familiar with Tesla. But there are other companies in the field, such as Nikola Motors. The EV truck manufacturer wants to change the world and push towards innovation in energy and electric transportation.
So, if you’re looking for an investment in the future, Nikola might be worth a look. But what is the current market state of the company? We’ll talk about everything you need to know about Nikola stock (NASDAQ: NKLA).
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Table of Content
Nikola Live Financial Data and Financial Summary
Nikola Company Profile And Key Competitors
While everyone knows of Tesla, another electric car company is also fighting the renewable energy battle. It has a brilliant name as well – Nikola or Nikola Motors. It’s an American company.
Let’s check out the company profile before discussing Nikola Motors stock. Nikola Motors mainly focus on everything electric. Its product range includes battery-powered electric vehicles, energy solutions, and fuel cell electric vehicles.
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Trevor Milton founded the company in 2014. Since then, the company has showcased many multiple concept models. The natural gas-fueled turbine electric semi-truck was the first. Currently, the company is run by Mark A. Russell, the CEO, and Director of the company.
Nikola Motors became a publicly traded company in 2020. Nikola’s stock price almost doubled after a reverse merger, which happened on March 3rd, 2020 – more on this a bit later.
Its stock price rose quite a bit. As a result, it went from $10 to $34. The peak price of Nikola stock (NASDAQ: NKLA) was $80, which is quite impressive. However, this rise wasn’t sustained for long. It fell a lot over the next few months.
The company had its fair share of controversies as well. Hindenburg Research, a short-selling firm, accused the company of lying about its existing technology. However, Nikola Motors have said that these were false accusations.
Whether or not the accusations were true, there was some damage. GM was in a partnership with the company.
But in November 2020, it mentioned that it scaled down its agreement with Nikola. However, it does still plan to give Nikola access to its fuel cell technology. Currently, Nikola Motors is valued at $2.1 billion.
The Reverse Merger
The reverse merger did wonders for Nikola Motors stock, raising more than $700 million. It did all this without dealing with the usual high costs of publicizing a company for an IPO. It announced that it had a deal with VectoIQ in March 2020.
VectoIQ is a publicly traded special purpose acquisition company, known as a SPAC. These are blank check companies used for raising funds through an IPO.
VectoIQ was created for the sole purpose of acquisitions and mergers. With a reverse merger, companies can go public much faster. And that’s exactly what Nikola did.
How Does The Competitive Landscape Look?
As you can imagine, the company has quite a few competitors in this space. The most well-known is, of course, Tesla. Its eccentric founder Elon Musk is just as passionate.
So, how does the competitive landscape look for Nikola? Nikola has a few competitors that are in strong positions. But that doesn’t mean Nikola isn’t doing good.
Tesla
Out of all the companies Nikola competes with, Tesla is the most high-profile of the bunch. Tesla has the largest market cap, was founded in 2003, and is headquartered in Austin, Texas. Apart from this, the company has office locations in many places around the world.
Tesla is also the largest regarding the number of employees and market valuation. Around 99,000 people work at Tesla today. It is also worth an impressive $953.1 billion. Furthermore, Tesla is at the top when it comes to financials as well.
It has a revenue of $53.8 billion, with a net income of $5.6 billion in 2021. Gross profit was $13.6 billion, with a cost of good standing of $40.2 billion. Tesla has also raised a total of $20.1 billion in funding.
Rivian Automotive
Then we have Rivian. With a valuation of $35.1 billion, Rivian isn’t a company under the radar. Rivian is a public company founded in 2009. Their headquarters is located in Irvine, California.
Apart from Tesla, Rivian is the 2nd strongest competitor in this space. Although its social media engagement isn’t as high as Tesla’s, it still produces good numbers. As for financials, Rivian Automobile had a net income of $4.7 billion and a gross profit of $465 million. Its revenue and cost of goods were $55 million and $520 million, respectively, in 2021.
Nikola Leadership
Here’s a small and brief overview of the leaders at Nikola. This will help you understand the minds behind the company.
| Name | Position/Title |
|---|---|
| Mark A. Russell | CEO & Director |
| Britton M. Worthen Esq. | Chief Legal Officer & Sec |
| Kim J. Brady | Chief Financial Officer |
| Pablo M. Koziner | Pres of Commercial |
| Joseph R. Pike | Chief HR Officer |
| Umran Ashraf | Global Head of Vehicle Engineering |
| Michael Lee Erickson | Global Head of BEV |
| Mr. Mark Duchesne | Global Head of Manufacturing |
| Henry Kwon | Director of Investor Relations |
| Michael Lohscheller | Pres & Director |
Nikola’s Mission
The company prides itself on technology disruption, aiming to provide innovation in energy, automotive, and transportation solutions. The company is striving towards a zero-emission future.
We have a section on Nikola’s stock forecast if you like the company’s values. So, you can check whether you want to invest in it for yourself. Speaking of which, you also need to know about Nikola’s stock price today.
Nikola Stock Fundamentals (NASDAQ: NKLA)
If you’re an investor looking to invest in a company like Nikola, understanding its stock fundamentals is very important. It’ll help you break down information and make better decisions.
Fundamental analysis determines the real stock value or the fair market value. It’s done by taking all related economic and financial factors into account.
Investors examine the factors that could contribute to the success or failure of the company. More importantly, it will also give investors a framework that they can use to predict the stock direction.
Earnings Per Share
Earnings per share are calculated by dividing the company’s net income by the average outstanding shares after subtracting dividends for preferred stock. It’s crucial information you must know when dealing with Nikola Motors stock.
Nikola’s current EPS stands at 1.73x. But this might change depending on how it performs. For monitoring, Nikola stock (NASDAQ: NKLA) forecast numbers are essential. This figure can be used to gauge and search for stock trading lower or higher than its real value.
If the real value exceeds the market, you can assume it’s undervalued, and buying is recommended. We have a whole section on whether you should buy Nikola stock (NASDAQ: NKLA) or not. So, keep on reading for that.
EPS is a critical metric in this case. It will tell you the profitability of the company. If you compare it to the EPS of other companies, it will give you a better picture.
Nikola Drivers
Nikola Motors stock is the number one stock in the Beta category. A catch-all method can be used for this called the comparative valuation analysis. This can be used to value Nikola Motors by discounting the company’s dividends or cash flow.
However, you must understand that this doesn’t find the company’s intrinsic value. It compares the stock price multiples to a bar or the nearest competition to check whether the stock is undervalued or overvalued.
This model is used because of its large multiples – for example, the P/E ratio, which is short for price to earnings ratio. It is also used because of price to cash flow, price to sales, and price to book, among others. The P/E ratio is the most common. This makes sense since it’s based on earnings.
Equity Analysis
If you’re doing an equity analysis, you should look into the stock peer comparison. This method analyzes the company’s direct competition.
It gives you an idea of the company by taking its short ratio to detect stocks with similar characteristics. You would use this to see whether it would be a good addition to your portfolio.
Nikola Motors Fundamentals Chart
| EBITDA | $714.71 Million |
| Return on Equity | 94.26% |
| Z Score | 43.2 |
| Return on Asset | 47.31% |
| Market Capitalization | $2.05 Billion |
| Current Valuation | 2.27 Billion |
| Beta | 1.24 |
| Outstanding Shares | $406.88 Million |
| Price to Earnings to Growth | 0.27x |
| Insider Shares Owned | 41.18% |
| Shares Owned by Institution | 26.83% |
| EPS | 1.73x |
| Shorted Shares | $87.16 Million |
| Short Ratio | 9.33x |
| Price to Book | 2.87X |
| Cash Flow | $379.23 Million |
| Revenue | $1.89 Million |
| Book Value | 1.75x |
| Profit (Gross) | 23 K |
| Current Ratio | 2.28x |
| Net Income | $723.16 Million |
| Debt to Equity | 0.045% |
| Cash and Equivalents | $377.13 Million |
| Total | $28.09 Million |
| Cash Per Share | 0.90x |
Knowing the stock fundamentals is crucial to make a sound financial decision. It’ll help you understand the current landscape of where the company stands. You can check out this page for further info.
Nikola Stock Technical Analysis (NASDAQ: NKLA)
Technical stock analysis is very different from fundamental analysis. This method tries to predict stock movements based on past data. It is mainly based on price and volume data.
Nikola’s stock price is $5.12, and the oscillators indicate selling. You can check out this data to get updates on Nikola stock’s technical analysis. You’ll also get current updates on the Nikola stock price.
Nikola Stock Valuation
Currently, Nikola Motors stock is valued at $5.12. At this rate, it’s underperforming compared to the market. But as with any business, calculating true value isn’t always easy. You need to keep a couple of things in mind.
We need a different approach to calculating the value of a company like Nikola. Things to be considered should be long-term debt, preferred stock, balance sheet items, and other important financial statements.
In the most recent Nikola stock price valuation data, Nikola’s stock seems to be undervalued. However, the price fluctuations are pretty risky. That is likely to raise a red flag for many investors. But there is some good news.
Nikola has the best price-to-book ratio compared to other similar companies. It has good standing in the beta categories as well. Although we mentioned that the latest price is $5.12, the real value seems to be $8.52/share.
It can be a good idea to take in undervalued stocks sometimes. This is followed by trading overvalued stocks since the real value, and asset prices will eventually merge.
Nikola Stock Forecast
Let’s check out Nikola’s stock forecast. How does the stock forecast for Nikola Motors stock look? Well, it paints a pretty good picture so far. The medium target sits at 10.00, and the median estimate represents a 96.08% increase. This increase is calculated from the latest price.
Some investors have the opinion of holding Nikola stock (NASDAQ: NKLA). The highest estimate is as high as 20.00, and the lowest is 6.00. This hasn’t changed since September.
Earnings Per Share Forecast
You cannot talk about the Nikola stock price (NASDAQ: NKLA) with an EPS forecast. EPS for the 2nd quarter of 2022 ranges from -0.30 to -0.25. But the reported value was -0.25. This exceeded the analysts’ value by +31.28$. The forecast for earnings per share for the 4th quarter of 2022 is -0.59 to -0.27. The consensus estimate is -0.40.
Nikola Stock Latest Market News
Staying up-to-date with the latest trends in the stock market is crucial for any modern investor. It will also expand your knowledge about Nikola’s stock forecast.
There’s a term for this called “trading the news.” It would help if you learned to trade the news to be an agile investor.
That’ll help you make money regardless of the situation. The price of Nikola’s shares tomorrow might be different from Nikola’s stock price today. So, being in the know is important.
Most stock news is scheduled, like earnings reports and updates. So, you’ll need to think about it strategically. Set up your plan beforehand. You don’t want to react to it but rather be proactive.
Most news can be good for an asset class. But it is very bad for others. You should avoid reacting to what people think all the time. If you’re confident in your investments, it pays to stick with them.
That’s why it’s essential to know the latest market news. And in this case, it’s all about Nikola. You can get the latest trends and news from CNBC and Yahoo Finance sites. That’ll help you stay ahead of the curve and plan your next move.
Should I Buy Nikola Stock (NASDAQ: NKLA)?
This is the big question, should you buy it? Analyzing the Nikola stock forecast and wondering what the Nikola stock price today is and deciding whether to buy it or not.
So, is Nikola Motors stock the right stock to buy now for investors? If you’re following the news, you’ll know that the company has ramped up its production of electric vehicles.
Nikola started with a bang. Its share prices were at an all-time high. But after a fraud investigation from the DOJ, the hype has come down quite a lot. This meant that the stock collapsed.
Analysts predict the company may generate up to $15 million in profits this year. This is due to the shipment targets of its vehicles and a price range from $120,000 to $150,000. With that being said, however, things aren’t all sunshine and roses.
Nikola is expected to incur a loss of $704 million since it plans to expand. The company held only $360 million in cash and other equivalents at the end of March. But thanks to Tumim Stone Capital, the company can access an additional $409 million.
The company wanted to raise more money, about $1.5 billion, through a secondary share offering. However, this would increase its outstanding share to 800 million. It was a decision that was shut down in a shareholder meeting.
If Nikola Motors cannot approve it, then they might need to take on more debt. This might not be the best thing to do, despite having a modest debt-to-equity ratio of 0.5. Nikola’s stock is quite expensive at 22x the year’s sales.
The 3rd Quarter Update
In quarter 3, the company expressed interest in strengthening its sales and service network. It now expects to deliver 25 Tre battery electric trucks, with dealers in 130 locations across 28 states.
The company has started looking heavily into Hydrogen Fuel. It recently began testing ‘Tre fuel cell elective vehicles,’ also called Tre-FCEV. On the other hand, Wall Street expected Nikola to lose 25 cents per share. However, the company proved analysts wrong and only lost 22 cents per share. So, what does that mean? Is the Nikola stock price today worth it?
What’s The Decision?
Nikola seems much more stable than in the past, and the Nikola stock forecast is mostly positive. But it’s still too speculative. At least Nikola’s stock price is relatively high compared to its near-term growth.
Investors that like taking risks and have the capital to back up the decision can consider buying Nikola stock (NASDAQ: NKLA). But as it stands at this moment, the answer is no. You shouldn’t buy Nikola stock at this point.
However, the company might soon turn around, which can mean a completely different story. Until then, companies like Rivian can be interesting for those interested in speculative stocks. So, Nikola Motors stock at this moment could be a bit risky.
How To Buy Nikola Stock?
Alright, if you want to take a leap and have confidence in the brand, we prepared this section for you. We’ll give you a step-by-step guide to buying Nikola stock (NASDAQ: NKLA).
It’ll be a general overview, though. It’s up to you to ensure you invest your money correctly. But we’re here to help you with that.
Step 1: Finding A Broker
The first order of business is finding a broker. You’ll need to open an account with a broker to purchase and trade stock. But don’t just go around choosing any broker, though. There are a few things you must keep in mind.
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Buying shares is an intensive business. The last thing you want to do is fiddle with the platform settings you’re on, trying to figure out what does what. Look for a platform that’s user-friendly and easy to navigate.
Commission Free
You’ll come across a lot of brokers that offer commission-free trades. These platforms are perfect for small accounts and are ideal if you just started getting into shares since they help you grow faster.
Although for someone more experienced, a commission-free trading experience might not be at the top of their list.
Low Account Fees
But low account fees will be attractive to veterans and new traders. You should see all the brokers that are available and compare the fees.
Some will indeed charge less than others. But make sure to read the fine print. You don’t want to deal with hidden fees later.
Step 2: Funding Your Account
After you have opened your account, it’s time to fund it. There are multiple options to do this. You can choose a debit/credit card or just simple bank transfers.
The very first initial deposit may take a bit longer. So, there’s nothing to worry about if that’s the case.
Step 3: Choose How Much To Invest
This is solely your own decision. You should choose how much of your money you want to invest. Perhaps, a better question to ask yourself is how much you should invest. If you’re just starting, then make sure you play it safer.
At first, only invest with money you can afford to lose. You can invest more money as you get more experienced and learn better.
Step 4: Choose Between ETFs And Stocks
Now it’s time to choose between stocks and ETFs. Again, this is your decision. ETFs might be suitable for some people but not for others. The same applies to stocks as well. ETFs are great for those who don’t want to take big risks.
Step 5: Setting Up The Order
After that, you want to set up your order. By this, we mean your limit order, stop limit, market order, and stop loss.
Step 6: Place The Order And Monitor Performance
Now place the order with the right symbol. For Nikola, it’ll be NKLA. Hit buy, and the order will go through. At this point, you need to monitor the performance carefully. This is where the main game is played.
Since Nikola is so speculative, there is expected to be some volatility. So, monitoring the performance will keep you ahead of the curve, and you’ll know if any major changes need to be made or not.
Wrapping Up
So, there you have it! Now, you should have a pretty good idea about Nikola stock (NASDAQ: NKLA) and where it stands in the current market.
The general summary is that it’s a risky stock to buy, but there is a chance of a turnaround. But are you willing to take the risk? Make sure you take calculated risks and look into important data such as Nikola stock forecasts and market news.
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