Nikola Corp (NKLA) stock price is at the front page of the Wall Street news again. Insane rally that outpaced TSLA shares tenfold in the last 2 days continues on Thursday. But why? Seems like everyone is asking this question
Either someone knows something or retail investors think that the worst is gone and we are going toward another spike.
But here are two catalysts that could easily push NKLA stock towards and above $50 price tag.
Nikola CEO Mark Russell told Reuters on Wednesday that he is confident Nikola will close a deal with an energy partner (BP), and he defended the company’s technology and strategy against a short-seller’s fraud allegations. This sent NKLA shares up on Wednesday and riding this wave the shares are up 20% again on Thrusday. Mark Russell is not Trevor Milton and I am sure he knows something.
He is not guessing that they will sign a deal by the end of the year. He knows that at least one big company will bite the hook. No matter everything else, Nikola comes with a first mover advantage and big dogs might use this as a leverage to penetrate zero emissions trucking which is seen as a $500 billion industry.
Second catalyst is obviously GM partnership. The day Nikola announced GM deal stock went $15 up. Once GM is definitely a done deal we may see NKLA stabilizing around $40. But if GM decides to take another, bigger, stake in Nikola (first mentioned by CNBC’s Phil LeBeau reported, citing sources) we will see NKLA going forward $50. And this is why investors are piling in on NKLA today. They do not want to miss the opportunity to earn money fast. “Don’t be surprised” if it happens, said LeBeau about bigger GM stake. So, don’t be surprised if NKLA hits $50.
It was a weird 2020 on Wall Street, it just got weirder.