Why Nikola Stock Crashed in August
Nikola (NASDAQ: NKLA) has an aggressive vision to create a network of hydrogen production and fueling infrastructure for the fuel cell electric heavy-duty trucks it has been building and selling. The company has focused on a niche use case for short-haul trucking needs near port facilities in North America.
While it has made admirable progress with its plans, headwinds for the business have been growing. That has increased fear among investors that the risk-reward balance might not be worthwhile. The result has been a punishing month of August for Nikola stock.
Nikola shares plunged 26.2% for the month, according to data provided by S&P Global Market Intelligence. With sales picking up and the company reporting record revenue in its second-quarter update last month, investors might be wondering whether the dip is a buying opportunity or the stock should just be avoided.
Source Fool.com
