Nikola (NASDAQ: NKLA) initially impressed the bulls when it went public by merging with a special purpose acquisition company (SPAC) on June 3, 2020. The electric-semitruck maker's stock started trading at $37.55 on its first day as a combined company and more than doubled to its all-time high of $79.73 just six trading sessions later.

At its peak, Nikola had an enterprise value of $28.7 billion, even though it hadn't shipped a single vehicle yet. Instead, it was being valued based entirely on the ambitious production targets it set during its pre-merger presentation in March 2020.

Image source: Nikola.

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Source Fool.com