- NASDAQ: NKLA is set to extend its gains on Friday, completing a six-day winning streak.
- Nikola Corporation has been rising amid speculation about a deal with General Motors.
- The electric vehicle market is benefiting from an uptrend.
Another day, another increase for NASDAQ: NKLA? Salt Lake City-based Nikola Corporation has been benefiting from a winning streak, rising for every day since Friday, November 13. The main upside driver for the electric vehicle maker has been speculation about a major deal with General Motors (NYSE: GM).
According to a publication – since removed – on GM's website, the legacy automobile firm would build Nikola's Badger model. The accord suggests that manufacturing would include the Ultium battery system and that GM would have exclusive rights for supplying Hydrotec fuel cells.
While Nikola and Tesla are competing with giants such as GM and Ford, they would benefit from any type of collaboration. The 20th-century companies have an advantage in distribution, manufacturing, and marketing.
Both Nikola and GM reached an agreement in principle back in September, but have yet to finalize the details. Concerning reports by short-sellers have hurt NKLA's shares in the early autumn. The firms only confirmed that talks continue, without providing additional details.
With or without a comprehensive agreement, Nikola Corporation (NASDAQ: NKLA) has room to rise alongside the broader EV sector. Workhorse Group Inc (NASDAQ: WKHS) has been standing out with gains and is also on course for further increases. Workhorse has received two fresh reasons to rise.
NKLA stock price
NASDAQ: NKLA is up around 2% in Friday's pre-market trading, coming on top of a 3.19% increase on Thursday. Shares hit a bottom of around $18 during November, creating a double-bottom. Critical resistance awaits at $33.83 which was the latest high point before the crash in mid-September.
The upside target is $50 – a psychologically significant and a high point in early September. The 52-week high of $93.99 remains beyond the horizon for now.
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