Nikola Corporation (NKLA)

[Televet]

https://seekingalpha.com/article/4546018-nikola-stock-no-room-in-booming-industry?mailingid=29343697&messageid=2800&serial=29343697.6158&utm_campaign=rta-stock-article&utm_medium=email&utm_source=seeking_alpha&utm_term=29343697.6158

Conclusion

Nikola is dealing with issues on many fronts, from a stained reputation to ramping competition. To make matters worse, the company has an incredibly shaky balance sheet. In fact, the company was so low in cash in 2021 that it had to scrap some of its plans. The company only had $841.8 million in total liquidity in Q2, which does represent a modest increase from $794.0 million in Q1.

Nikola's downward slide will likely continue even at its current valuation of $1.4 billion, which stands in sharp contrast to its inexplicitly high valuation of ~$32 billion at its peak. The clean energy transportation industry is simply far too crowded and competitive for Nikola to effectively compete in over the long term.