Nikola Corporation (NKLA)

[srm4u]

Nikola Motors - Will the turnaround come after the contrary opinion?
September 27, 2021

The stock market wisdom is: Buy on bad news. The supposedly bad news at the moment concerns the founder of Nikola and his behavior, but not Nikola himself, even if the share price suffers from the fact that the former CEO is now being brought to justice. In my microcensus (I asked many small and also some large investors) it is clearly visible that investors "still" avoid Nikola Motors because they have identified a negative mood and some justified prejudice.

I see it the other way around: Last week, the plant in Ulm was presented to the public together with Iveco, as was the TRE. One day 3,000 battery-electric and hydrogen-powered trucks could roll off the production line in this factory. With just under seven percent, the CNH Group is one of the largest single shareholders in Nikola and also a strategic partner. I therefore expect that CNH will also get into Nikola’s technology via subsidiaries such as Iveco, Case, New Holland, Magirus and others. CNH may also increase its stake, which would make perfect sense.

Bosch is definitely the supplier of the fuel cells (new agreement recently reached), which leads me to believe that the supplier company will now hold onto its 5% stake for psychological reasons alone. General Motors (GM) is now just No. 2 for the stacks. However, I would have relied on the stacks from Ballard Power, as commercial vehicles and buses (over 80 million km) are already successfully driving around the world. In addition, the former CNH boss is now a board member at Ballard.

In the United States, the Coolidge, Arizona facility is taking shape. The progress of the construction work can be observed via webcam. At the same time, the company is building a network for sales and service partners - so far 116 - and is setting the tone for the in-house production of renewable electricity and hydrogen.

Meanwhile, I'm also looking at another number: the short interest. This is over 62 million shares, which is over 30% of the free float I have defined. The free float are the shares that can be freely traded on the market, whereby I have excluded the shares of the strategic partners CNH and Bosch. If the news is good, you have to cover up. In extreme cases, there is even a short squeeze, which means that shortsellers who rely on falling share prices could come under severe pressure and stock up on rising prices in order to limit their losses or secure short profits.
https://www-hzwei-info.translate.goog/blog/2021/09/27/nikola-motors-kommt-nach-der-contrary-opinion-der-turnaround/?_x_tr_sl=de&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=nui,elem