Nikola Corporation (NKLA stock) rises on analyst optimism over deal with GM
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- NASDAQ:NKLA gains 1.27% on Tuesday amidst a broader market bounce back from Monday’s selloff.
- JP Morgan analysts expressed optimism that Nikola and GM will complete their deal.
- Good news for Nikola as the Badger Truck should see renewed interest.
It is just about the only positive news that has come out of NASDAQ:NKLA in months, but it was enough for investors to buy back into the beaten-down stock at its current price levels. On Tuesday, Nikola rose by 1.27% to get back above the $20 price threshold and closed the trading session at $20.72 as the broader markets rebounded from Monday. Still, one green day does not erase the fact that the company is nearly on life support after losing over 25% in the last month.
The on-again-off-again deal with General Motors (NYSE:GM) is evidently back on as the two companies close in on the agreement that would allow Nikola to utilize GM’s manufacturing and supply chain to produce its vehicles. It is no secret that Nikola needs a production boost and GM is desperately trying to play catch up in the electric vehicle market, so the relationship does seem to merit some optimism for the future. JP Morgan analyst Paul Coster agrees, as he upgraded the price target for Nikola to $41, which represents a near 100% increase from its current trading levels.
NKLA stock price
While the deal between the two companies is expected to be set in stone by the beginning of December, where does that leave Nikola investors as we approach the quarterly earnings call at the beginning of November? We know that production has yet to begin on any vehicles so much of the rhetoric that CEO Mark Russell will have to spin to investors will be speculation on what the pending GM deal will mean for the company’s future.
- NASDAQ:NKLA gains 1.27% on Tuesday amidst a broader market bounce back from Monday’s selloff.
- JP Morgan analysts expressed optimism that Nikola and GM will complete their deal.
- Good news for Nikola as the Badger Truck should see renewed interest.
It is just about the only positive news that has come out of NASDAQ:NKLA in months, but it was enough for investors to buy back into the beaten-down stock at its current price levels. On Tuesday, Nikola rose by 1.27% to get back above the $20 price threshold and closed the trading session at $20.72 as the broader markets rebounded from Monday. Still, one green day does not erase the fact that the company is nearly on life support after losing over 25% in the last month.
The on-again-off-again deal with General Motors (NYSE:GM) is evidently back on as the two companies close in on the agreement that would allow Nikola to utilize GM’s manufacturing and supply chain to produce its vehicles. It is no secret that Nikola needs a production boost and GM is desperately trying to play catch up in the electric vehicle market, so the relationship does seem to merit some optimism for the future. JP Morgan analyst Paul Coster agrees, as he upgraded the price target for Nikola to $41, which represents a near 100% increase from its current trading levels.
NKLA stock price
While the deal between the two companies is expected to be set in stone by the beginning of December, where does that leave Nikola investors as we approach the quarterly earnings call at the beginning of November? We know that production has yet to begin on any vehicles so much of the rhetoric that CEO Mark Russell will have to spin to investors will be speculation on what the pending GM deal will mean for the company’s future.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.