Nikola Gets First Sell Rating as ‘Dark Cloud’ Gathers
- Wedbush downgrades stock on execution risk, Tesla’s tech leaps
- Shares drop as much as 24% to lowest price since May
A Nikola Corp. truck with trailer.
Source: Nikola Corp.
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Nikola Corp. shares nosedived on Thursday after the electric-vehicle startup got its first sell-equivalent rating, with Wedbush analyst Daniel Ives citing the loss of a driving force in its founder’s departure, and the threat posed to hydrogen fuel’s appeal by Tesla Inc.’s “eye-popping battery innovations.”
Nikola’s shares have been on a rollercoaster ride, shedding nearly 80% of their value since June’s record high as the truckmaker has come under increasing scrutiny, resulting in its founder Trevor Milton’s decision to resign as executive chairman on Monday. The stock fell as much as 24% in New York to the lowest intraday level since May, extending the week’s losses to over 50%.