Why Nikola Stock Is Lower Today

A key executive has left the corporate, throwing extra doubt on its ambitious plans.

What came about

Shares of embattled electrical-truck start-up Nikola (NASDAQ:NKLA) had been purchasing and selling lower on Wednesday afternoon, after Bloomberg reported that a key executive has left the corporate.

As of 3 p.m. EDT on the present time, Nikola’s shares had been down about 5.7% from Tuesday’s closing imprint. 

So what

Bloomberg’s Ed Ludlow reported that Jesse Schneider, who had been Nikola’s executive vice chairman of technology, hydrogen, and gasoline cells, left the corporate on April 1. 

Schneider had been main groups engaged on gasoline cell programs for Nikola’s upcoming electrical semi vans, moreover a deliberate network of hydrogen refueling stations, in accordance with the document. 

A Nikola Tre, a Class 7 electric semi truck, shown pulling a trailer on a highway.

Nikola plans to appear on the start of its battery-electrical Tre, role for slow this year, with a semi powered by hydrogen gasoline cells. These plans might furthermore honest now be in quiz after the manager main the gasoline-cell effort departed. Image supply: Nikola.

Nikola has been working to compile auto merchants‘ self belief after founder Trevor Milton left by shock amid a scandal final year. The departure of Schneider, considered as a key member of the manager team, received’t serve that effort. 

Now what

Nikola is aloof hoping to start its first truck, a battery-electrical Class 7 semi called the Tre, by the discontinuance of 2021. The idea is to appear on the Tre with a greater Class 8 electrical semi called the Two, which will use hydrogen gasoline cells supplied by Classic Motors (NYSE:GM). It’s miles no longer obvious whether Schneider’s departure will contain an label on these timelines. 

This text represents the idea of the creator, who might furthermore honest disagree with the “unswerving” advice role of a Motley Fool premium advisory provider. We’re motley! Questioning an investing thesis — even one in every of our contain — helps us all think seriously about investing and make choices that serve us change into smarter, happier, and richer.

John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>

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