Nikola Corporation (NKLA Stock) gains again, riding momentum of General Motors reassurance

  • NASDAQ:NKLA rose another 2.16% on Thursday amidst the broader market gain.
  • Nikola partner General Motors rises to YTD high on Hummer EV unveil. 
  • Electric vehicle sector rides higher on the tailwinds of Tesla revenue growth.

NASDAQ:NKLA could be in the midst of a small rebound here as shares gained a further 2.16% on Thursday to close the day at $22.72. Investors seem to be somewhat willing to take the risk now that industry heavyweight General Motors (NYSE:GM) has reiterated its commitment to partnering with the Arizona-based electric truck maker. The stock has actually gained 15% since the closing bell on Friday of last week and although it has a long way to go to reach even its 50-day moving average of $27.61, the past few days have been a positive sign for investors wondering if they should be holding on.

Nikola’s soon-to-be partner General Motors hit its year-to-date highs for 2020 as the stalwart automaker jumped up 4.58% after unveiling its brand new Hummer EV, slated for release in 2022. The new ‘super truck’ as it has been dubbed is seen as a direct competitor to Tesla’s (NASDAQ:TSLA) Cybertruck which is set to debut at some point in 2021. The shift in GM’s focus to electric vehicles is good news for Nikola investors as the brand seems committed to clean energy vehicles for the future.

NKLA stock price

NKLA stock price chart

Can shares of Nikola continue to rise as investors and Wall Street anticipate a completed deal with GM by December 3rd? Nikola will announce its quarterly results first on November 9th, and it will be interesting to see how the market reacts to the company’s first earnings report since former-CEO Trevor Milton stepped down. While we certainly cannot expect any profits for the quarter, sometimes optimism for the future is enough to convince investors to buy back in. 

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