Why Nikola Stock Dropped 6% Tuesday
Shares of electric-vehicle start-up Nikola (NASDAQ: NKLA) continued an extended price decline today, after dropping more than 50% in the last three months. As of 4:35 p.m. EDT Tuesday, Nikola shares were down more than 6% on the day.
The electric-vehicle (EV) sector has been under pressure as lofty valuations and questionable business plans have driven investor sentiment away from pre-revenue companies like Nikola. Most recently, Wedbush analyst Dan Ives cut his price target almost in half to $13 from a previous $25. Ives wrote, "Overall we still believe the company's EV and hydrogen fuel cell ambitions are hittable in the semi-truck market, although we still have clear concerns that the execution and timing of these ambitious goals stay on track over the coming years."
Image source: Nikola.
Source Fool.com
