Nikola Corporation Stock Plummets 20% After Delisting Notice
May 26, 2023
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Nikola Corporation ($NASDAQ:NKLA) has seen its stock plummet by 20% in response to a delisting warning from the Nasdaq stock exchange. The warning from the Nasdaq came after a series of controversies surrounding the company’s electric vehicle programs. NIKOLA CORPORATION is a company that specializes in designing, manufacturing, and marketing hydrogen-electric and battery-electric vehicles. The company has made significant investments in the development of electric vehicles, and has ambitions to become a leader in the electric vehicle space. However, recent questions around the accuracy of the company’s technology have caused its stock to drop sharply in the past few months.
Analysis
At GoodWhale, we have conducted a financial analysis of NIKOLA CORPORATION and have assessed their Risk Rating as medium. This means that it may be a viable investment option for investors interested in medium risk investments. However, our analysis has identified three risk warnings in the company’s income sheet, balance sheet, and cashflow statement. If you’re interested in finding out more about these warnings, sign up with us to access our detailed report. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nikola Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 60.05 | -800.39 | -1337.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nikola Corporation. More…
| Operations | Investing | Financing |
| -625.34 | -240.08 | 686.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nikola Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.16k | 612.49 | 0.92 |
Key Ratios Snapshot
Some of the financial key ratios for Nikola Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 372.4% | – | -1248.2% |
| FCF Margin | ROE | ROA |
| -1362.5% | -87.4% | -40.4% |
Peers
The electric vehicle market is growing rapidly and is expected to continue to do so in the coming years.
– Blink Charging Co ($NASDAQ:BLNK)
Blink Charging Co is a provider of electric vehicle (EV) charging equipment and services, with a focus on the design, installation and operation of EV charging stations. The company has a market cap of 692.02M as of 2022, a Return on Equity of -29.61%. Blink Charging’s mission is to accelerate the adoption of electric vehicles by making it easy and convenient for drivers to charge their vehicles. The company offers a variety of different charging options for home, public and commercial use.
– TuSimple Holdings Inc ($NASDAQ:TSP)
TuSimple Holdings Inc is a leading autonomous driving technology company with a mission to bring safer and more efficient transportation to the world. The company’s self-driving technology can be used in a variety of applications, including last-mile package delivery, long-haul trucks, public transportation, and autonomous taxis.
TuSimple was founded in 2015 and has since raised over $1 billion in funding from leading investors including Sina, Nvidia, and SoftBank Vision Fund. The company has over 1,000 employees and is headquartered in San Diego, CA.
– The Lion Electric Co ($TSX:LEV)
The Lion Electric Co is a manufacturer of electric vehicles, founded in 2009. It has a market cap of 649.81M as of 2022 and a Return on Equity of 30.94%. The company makes electric school buses, medium- and heavy-duty trucks, and all-electric vehicles for urban delivery, utility, and off-road applications.
Summary
NIKOLA Corporation has recently been issued a notice of delisting after their stock price dropped 20% in a single day. This is a major warning sign for investors, as it indicates that the company may not be meeting its financial obligations or is otherwise in a difficult situation. The stock price has continued to fall in the days following the delisting notice, and it may be a long road to recovery for the company’s financials. It is important for investors to do their own analysis and research in order to make an informed decision about whether or not to invest in NIKOLA Corporation.
Consider factors such as the company’s future prospects, market trends, and potential risks before investing. It is also important to keep an eye on any changes in the company’s financial reports to ensure that it is a safe investment.
