Today’s been an interesting one for investors in upstart battery electric and fuel cell electric vehicle maker Nikola (NASDAQ:NKLA). Opening nearly 10% higher this morning, NKLA stock has since given up most of its gains as of early afternoon trading.
That said, Nikola remains red-hot right now on social media platforms. Currently trending No. 1 on Stocktwits, it appears retail investors have a lot to discuss and digest.
Notably, previous significant orders have given this EV stock life. On Dec. 17, Nikola announced the first delivery of its Tre battery electric trucks to Total Transportation. This deal resulted in a spike in the company’s stock price. However, a more recent spike followed news that Heniff Transportation Systems also placed an order for 100 trucks.
Let’s dive into what this means for investors, and why Nikola is becoming a hot commodity again.
NKLA Stock Continues Its Momentum-Driven Move
Nikola’s recent milestone achievement of making its first delivery before the end of the year is a big deal. Investors may now take the pre-revenue tag off of this EV stock. For investors looking to forecast cash flows and look at this business from its fundamentals, that’s a very important thing to consider.
Additional orders from large clients have also spurred interest in this stock. Adoption among battery EV and FCEV trucks via trucking companies is key to Nikola’s growth thesis. More orders means more momentum, and provides a basis upon which investors can view Nikola as a sustainable investment over the long term. Ultimately, concerns around the demand for Nikola’s products remain. However, these concerns are somewhat assuaged by the recent orders Nikola has received.
Recent news that a $125 million settlement was reached with the U.S. Securities and Exchange Commission over actions taken by Nikola during Trevor Milton’s reign is also a positive for this stock. Indeed, investors have a lot to like with Nikola, and appear to be favoring this EV company right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
