Now Wedbush analyst Dan Ives says the stock is fee almost half of what he previously thought as he diminished his price aim on Nikola to $13 per fragment, 48% below his old estimate of $25.
However that’s accumulated 18% above the build the EV maker’s stock closed on Friday.
Nikola’s gasoline cell powered truck. Image source: Nikola.
In a analysis narrate to purchasers, Ives said he thinks or no longer it is that you just may maybe well maybe well be judge of Nikola can present up the targets or no longer it is living for itself within the semi truck marketplace for EVs and hydrogen fuels, but because of of the firm’s dramatic reversal of fortunes, “Nikola is a memoir stock and ‘narrate me’ title for now.”
Nikola used to be purported to beget fraudulently inflated the capabilities of its battery and gasoline cell abilities, and is now below investigation by the Securities and Change Rate and Justice Department. Popular Motors (NYSE:GM), which used to be investing within the firm’s abilities, therefore backed out of the plan.
Ives says fairly a pair of the elevated valuation that Nikola’s stock loved sooner than the scandal used to be constructed on hype surrounding its abilities. Now, though, the market has removed that component since GM backed out and Nikola dropped plans for its Badger pickup, while additionally tempering its steering.
Nikola stock is down almost 30% year to this point, and the shares beget misplaced 90% of their height price from once they traded at $94 a fraction.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>