What happened
Shares of electric-truck maker Nikola (NKLA -1.79%) have had a bumpy last few days. Today's action mirrored recent movements as shares dropped 5%, then moved 4.4% above Monday's close, before finally settling back with a gain of 3% as of 10:40 a.m. EST.
So what
The volatility is partly left over from the previous days' news, and partly tied in with today's market sentiment.
Nikola Two (left) and Tre (right) semi trucks. Image source: Nikola.
Shares took a dive on Dec. 23 when the company announced it was backing out of an agreement to supply Republic Services 2,500 battery-electric garbage trucks.
But shares jumped yesterday after J.P. Morgan put out an analyst note that investors took as a positive view.
Now what
Many renewable energy stocks are taking a hit today, which explains the initial drop. But longer term, investors will have to decide whether Nikola can recover from the reputational hit it took earlier this year when a short-seller report forced founder and chairman Trevor Milton to resign.
The analyst report yesterday pointed out that the next year should be "less drama-filled" for the company. But it ultimately comes down to whether Nikola can successfully make both the battery- and hydrogen-electric trucks it claims. Expect plenty more volatility as investors digest news regarding the underlying business next year.
