{"id":180865,"date":"2023-09-04T00:59:43","date_gmt":"2023-09-04T00:59:43","guid":{"rendered":"https:\/\/precoinnews.com\/?p=180865"},"modified":"2023-09-04T00:59:43","modified_gmt":"2023-09-04T00:59:43","slug":"nikola-penny-stock-continues-to-fail","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/nikola-penny-stock-continues-to-fail\/","title":{"rendered":"Nikola Penny Stock Continues to Fail"},"content":{"rendered":"
Wall Street thinks the prospects for Nikola Corp. (NASDAQ: NKLA) will not recover. It trades as a penny stock at $1.27 a share. No positive sentiment about the electric truck maker\u2019s future can pull it out of a tailspin. (These are the 13 biggest electric vehicle business failures in American history.)<\/p>\n
Nikola has sold off 79% in the past year. This has wiped out about $3 billion in market cap. The drop is partly due to a bond sale at $325 million. These bonds can be converted into shares and cause dilution. Nikola also said a recall would likely make its 2023 delivery forecast too optimistic.<\/p>\n
However, the recent bad news is not Nikola\u2019s primary problem. Nikola is a small boat in a sea of other small EV companies, each with sales that make them irrelevant. No matter how strong their balance sheets are, they cannot compete with Tesla or all of the world\u2019s manufacturers, which have begun to flood the market with their own electric vehicles (EVs).<\/p>\n
The EV companies most unlikely to survive the decades as independent companies are Lucid and Rivian. Each has suffered a stock sell-off of its own.<\/p>\n
While Tesla has reached the point where it sells 400,000 vehicles a month, the smaller companies are fortunate to sell 10,000. As Tesla reaches the market with the Cybertruck, it will stake a position at the center of the electric pickup market.<\/p>\n \t\t\t\t