Shares of electric vehicle (EV) truck maker Nikola (NKLA 4.89%) were on quite a run in the last half of March. The stock was up 50% in just those two weeks, but some shareholders are starting out April by booking those profits. Nikola shares were down 5.4% on Friday as of 3 p.m. ET.
The big company-specific news that had Nikola shares popping recently was the fulfillment of its promise to stakeholders that it would begin initial commercial deliveries of its Tre battery electric vehicle (BEV) on March 21, 2022. The company hit that mark, and shares soared.
Another sector-related tailwind has been the renewed focus on progressing toward energy independence spurred by the Russian invasion of Ukraine. But Nikola is a long-term story, and it seems some investors are taking profits after the recent sharp increase in the share price.
The company expects those initial deliveries to result in the sale of 300 to 500 of its Tre BEVs this year. Nikola has guided investors to expect that to bring in revenue of between $90 million and $150 million in 2022.
This week, Nikola took another step to facilitate the sales of its trucks. It announced a new agreement with a commercial finance subsidiary of Mitsubishi HC Capital Group to help customers finance ownership of the Tre BEV and the upcoming hydrogen-powered fuel cell version. Some of those fuel cell electric vehicles (FCEVs) are currently in customer pilot-testing programs.
Today won't be the last day of profit-taking on this volatile stock. Shareholders should expect that, and should be in the stock for the long term as it will take years for Nikola's full story to play out.