Tesla Competitor Nikola (NKLA) Stock Down 12% Now after Skyrocketing 104% on Monday

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Nikola Corporation (NASDAQ: NKLA) stock price is down now. This comes as the stock prices rose to new highs on Monday. The hydrogen fuel cell company is set to unveil its badger Electric Trucks on June 29th. This was indicated in a tweet by Trevor Milton the founder and Chairman of Nikola.

Breaking: Nikola World 2020 (Badger World) to be announced Monday, June 29th. Badger reservations open same day. Deposit holders will have dibs on tickets for #nikolaworld2020 Phoenix, AZ. The Badger will dominate ICE trucks live. Be there to see it $NKLA https://t.co/VfRevYYrIt

— Trevor Milton (@nikolatrevor) June 8, 2020

Sources say that Nikola stock price surged by 104% on Monday. The closing price of $73.27 gave the company a market valuation of $26.38 billion.

At the time of filing this report, Nikola (NKLA) stock price was around $68.50 which indicates a drop of 12.80%.

NKLA Stock Rose as Nikola Brings New Technology to the Game

Nikola (NKLA) is one of those companies that has brought its homegrown technology to the automaker industry. The company is bringing Hydrogen fuel cells into transportation. The technology is most famous for its use in the Apollo Moon landing space mission. Applying it to the transportation industry confers a lot of advantages than regular EV technology. They are faster to recharge, discharge far slower and are quicker to recharge.

This puts Nikola head-to-head with Tesla Inc (NASDAQ: TSLA). Interestingly, as Nikola (NKLA) stock price went up Tesla (TSLA) stock went up as well.

Pundits have noticed that the bus market has done pretty well with the adoption of electrical vehicles. Trucks are naturally next on the list when it comes to usage. We have already seen that the Tesla (TSLA) Cybertruck is getting rave reviews by fans and users. Nikola Badger could follow the same path as well. Trevor Milton said in a statement:

“With our Nikola IVECO joint venture and over $10 billion in pre-order reservations, Nikola is positioned to be a wonderful story of how one company can literally change the world.”

Nikola (NKLA) has also indicated that Anheuser Busch Inbev NV (BUD) is one of those companies that have placed orders so far.

2021 Will Be a Great Year

Based on the current trends, Nikola (NKLA) is looking forward to profitability in 2021.

It also gives a realistic timing as the U.S. economy is expected to have somewhat recovered by then. Hopefully, a COVID-19 vaccine would also have been discovered and distribution would have started.

As opposed to Tesla’s fuelling stations, Hydrogen recharging stations are going to boost the adoption of Nikola vehicles. This will also cement the basic idea that fuel cell technology could work in transportation.

At the end of the day, Tesla may not be the king of the hill after all. A new industry is being born, with competitors moving to get things done, we may have the American spirit of innovation and drive prevail.

Want to learn more updates from the transport industry? Please follow the link.

Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.