NKLA stock today is a fraction of what it used to be worth when their SPAC debuted. The first problem we have with the company is a history of fraudulent statements. While the company tries to turn things around, we still see problems with the products, the company they acquired for batteries, and their focus shift to hydrogen trucks. So far nothing they’ve sold has generated enough money to cover costs which means they don’t have a business. Perhaps the worst part is that they’ve been diluting investors over time – rapidly – and they’ll need to raise more money soon because cash is running out. Either they give away more of the company or they take on more debt. This isn’t a company we’d ever consider investing in and our prediction is that things will only get worse over time. $NKLA stock is just another example of an electric vehicle company that’s finding out just how hard it is to scale production.
RESEARCH PIECES USED IN THIS VIDEO:
1. How SPACs Reward Everyone Except Retail Investors
2. Is the Green Hydrogen Economy a Pipe Dream?
3. All About Nikola Motor Company’s Stock Offering
The SPAC problem
Nikola’s fraud problem
Is hydrogen a pipe dream?
Negative gross margins
Can Nikola survive?
NKLA stock dilution
Bad batteries and Romeo Power
Problems with Nikola’s trucks
$NKLA is being pumped
Why you shouldn’t short NKLA
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