After Nikola (NASDAQ:NKLA) stock soared 60% yesterday, the shares of the electric vehicle (EV) maker are climbing another 30% in early trading today. Nikola yesterday announced a deal to sell hydrogen-powered trucks to BayoTech.
Since NKLA stock is heavily shorted, some believe that the shares could be undergoing a short squeeze.
More About Nikola’s Deal
BayoTech, a hydrogen production and delivery company, agreed to buy up to “50 Nikola trucks over the next five years.” In return, NKLA will purchase “low-carbon hydrogen from BayoTech’s Missouri and California hydrogen hubs and up to 10 BayoTech HyFill transports for bulk hydrogen delivery.”
In 2023 and 2024, BayoTech will acquire a total of 12 trucks from Nikola, NKLA indicated. BayoTech expects to use the trucks to provide its customers with low-carbon hydrogen.
NKLA Stock: Short Interest Data
Fintel gives NKLA stock a relatively high Short Squeeze score of 74.64. That score ranks 749 out of 4,596 names that were rated by the website. Also noteworthy is that earlier this morning, there no shares of NKLA were available to short at Fintel’s prime brokerage data source. This shortage of short shares has occurred two other times in the last 24 hours.
Finally, on July 13, 40% of the trading volume of the name outside of the major stock exchanges was carried out by short sellers on July 13.
Other Information on NKLA
On July 7, Nikola failed to obtain a sufficient number of votes to issue additional shares of its stock. That was the second time in two months that the company’s efforts to pass the proposal failed.
As I noted in a previous column, the website FrieghtWaves indicated that NKLA needs the funds that the new shares would produce in order to stay in business.
NKLA’s price has spiked 166% over the past month. However, NKLA stock is still down about 46% from a year ago.
On the date of publication, Larry Ramer did not hold (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.
