Here's Why Nikola Stock Bounced Back Wednesday
After dropping nearly 10% yesterday from its quarterly financial update, shares of Nikola (NASDAQ: NKLA) bounced back Wednesday morning. As of 11 a.m. EDT, shares were up 5.7%, after having jumped as much as 7.4% earlier. It seems investors are turning their focus from negative comments related to shorter-term issues to the longer-term potential raised in another earnings report yesterday.
Nikola announced yesterday that supply chain disruptions caused it to lower projections for battery electric semitruck production, and therefore revenue targets, for this year. But the company's long-term plans involve a broader adoption of hydrogen fuel-cell electric vehicles, and industrial power giant Cummins (NYSE: CMI) focused on the growth of a hydrogen economy in its earnings conference call yesterday.
Image source: Nikola.
Source Fool.com
