There are 2 completely opposite camps right now among the investors. The first one is cheering for Tesla Inc and the other, new one, is all for Nikola Corporation (NASDAQ:NKLA). The NKLA stock team is sure that the days of TSLA stock rallies are over and money will switch to hydrogen powered Nikola.
NKLA has disrupted TSLA. Tesla is yesterday’s news and Musk is day-old fish. If you focused on earnings you would have missed out on Tesla like Buffett missed out! Same goes for revenues: if you demand them, you will miss out on NKLA! Out with the old, in with the new!Seeking Alpha reader
On the other side of the Wall Street there are voices saying that NKLA is probably a fraud and that you should pull back your investment because you will lose your money on this one.
TSLA stock holders are mostly seasoned investors while younger folks prefer NKLA shares. Some of them are saying how the skyrocketing price of NKLA stock is a completely normal thing because the same thing happened with TSLA shares after its IPO.
But here is the thing, Tesla was already producing EVs before their IPO and furthermore Tesla had revenues .
When Tesla went IPO Tesla did $120M of revenue and had a Market Cap of $1.7b and NKLA now has a valuation of $30b with $0 revenue. In today’s money $1.7B is around $2b which means that NKLA IPO value is 15 times bigger than the one of Tesla.
But everything is possible in the markets as we saw in the last few months.
And leaving such comments on social media is not a smart thing because $1,000 NKLA price tag is also possible, not sure if it going to happen before TSLA though.
$NKLA is trading at 9x its projected revenues for 2024$TSLA is trading at 3x its projected revenues for 2024— ALEX 🚀 (@ajtourville) June 8, 2020
Tesla is 3x cheaper than Nikola on valuation, not to mention it has zero execution risk & a much larger addressable market compared to Nikola
Some analysts are saying that according to projected 2024 revenues and valuation Tesla is actually 3x cheaper than NKLA. But young investors prefer 100% gains in a day, that is a thing that TSLA investors are not counting on.
I look at a lot of charts, not for obscure mathematical calculations, but simply to get a broad sense of the market’s major directions and trends and the current trend is- stocks that can make you some lightning fast profits.