Where Will Nikola Stock Be in 5 Years?
Nikola's (NASDAQ: NKLA) stock has been nothing short of a catastrophe for its early investors -- with its share price down by a whopping 99.2% from its all-time high of around $80, reached in mid-2020. Over the last four years, this once-promising company has faced non-stop scandals and underperformance. But is Nikola doomed -- or can it turn its fortunes around in the next five years and beyond? Let's dig deeper.
Nikola was founded in 2014 and went public six years later. It aimed to pioneer zero-emission semi-trucks that could run on hydrogen fuel cells. Compared to lithium-ion electric vehicle (EV) batteries, hydrogen-based energy technologies offer several key advantages that could make them particularly useful for the unique needs of freight trucking, such as higher ranges, lower powertrain weight, and lower refueling times.
But while hydrogen fuel cell trucks have potential, they don't seem ready to generate shareholder value yet. Over time, traditional electric vehicle batteries have gotten cheaper and more energy-dense, with Goldman Sachs projecting a 40% decline in price per kilowatt hour by 2025 (compared to 2022 data). This erodes the advantages Nikola could have potentially gained by hitching its wagon to a rival technology.
Source Fool.com
