What happened
Investors are shunning electric vehicle stocks today, and Nikola (NKLA 7.23%) is no exception. Much of today's negative momentum looks to be from the financial update that electric car maker Lucid Group provided investors yesterday. Investors may fear that some of what Lucid said regarding supply chain troubles will apply to others -- especially start-ups like Nikola. Nikola shares were down 5.4% today, as of 1:42 p.m. ET.
So what
But Nikola reported its quarterly update last week, and it was received well by investors. The company is in a completely different niche from Lucid, and Nikola is currently focusing on pilot testing programs with potential customers, which seem to be going well.
Image source: Nikola.
Like Lucid, Nikola is still a start-up company that hasn't technically begun commercial sales yet. That will make the stock volatile, and when potential pitfalls show with other EV makers, its stock is likely to move in sympathy.
Now what
In its recent fourth-quarter and full-year 2021 report, Nikola said it hopes deliveries of its battery electric semi trucks will reach 500 vehicles in 2022. It also plans to complete validation of its hydrogen-powered fuel cell trucks, start construction of its first hydrogen production hub in Arizona, and announce at least two partners for hydrogen dispensing stations in California. The production and delivery of hydrogen fuel is expected to help support a network of its fuel cell trucks.
If Nikola continues to progress with customer development and successful product tests, it will begin to trade more on its own merits, and not just in tandem with other EV start-ups. Today's move indicates it hasn't reached that point yet.
