Why Is Nikola Stock Down Today?

What happened

Shares of electric-truck start-up Nikola (NKLA +0.00%) were trading lower on Monday amid a broad sell-off triggered by fears of a new round of COVID-related economic disruptions. 

As of 11:30 a.m. ET, Nikola's shares were down about 7.9% from Friday's closing price.

So what

The fast-moving omicron outbreak has traders worried: Nikola, like many other stocks, was down sharply on Monday morning after a weekend that saw new-case counts rise sharply in New York and elsewhere. 

But Nikola hit an important milestone on Friday, one that electric-vehicle investors should cheer: It made its first deliveries. The company delivered four of its Tre electric semis — two powered by batteries, two by fuel cells — to a company that operates trucks at the ports of Los Angeles and Long Beach, California. 

Nikola delivered four of its Tre semis to a customer on Friday, a key milestone. Image source: Nikola.

That company, privately held Total Transportation Services, plans to buy 100 of Nikola's semis over the next year. 

Now what

Yes, it's just four trucks. But make no mistake, Friday's news was bullish. As CEO Mark Russell said during the handover event, the company had committed to delivering its first trucks in the fourth quarter of 2021 -- and it did so. Whatever happens from here, Nikola's electric semis can no longer be dismissed as "vaporware." The company has delivered real trucks to a real customer. 

As electric-vehicle investors know well, Nikola has had a difficult history as a public company, and its stock is still far from its lofty 2020 highs. But while there's a long way to go before Nikola realizes even a fraction of its lofty vision, it's starting to look as if Russell has quietly put the company on track to deliver. 2022 should be a very interesting year.