Nikola (NKLA) Surges 14.5% As The Company Reaches Truck Production

Nikola (NASDAQ: NKLA) was once one of the most contentious new arrivals to the EV market. The company faced strong allegations of defrauding investors following a SPAC merger; another type of public listing that has bred mistrust and overembellished projections within the emerging EV sector. Nikola is a strong contender for a new range of renewable HGV travel; its production lines include the electric Tre semi-truck and the hydrogen fuel-cell powered Tre – expected to have a range of up to 500 miles. 

Investors finally had something to sing about this morning following an announcement that production of the electric Tre has finally started at the company factory in Coolidge, Arizona – sending the stock soaring premarket, retaining a 15% gain with the opening bells. In terms of market share, so far Nikola stands almost alone in terms of competition with Tesla’s semi-truck yet to reach the market.

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The company plans to begin deliveries in Q2 of this year, a reasonably impressive target given the current manufacturing climate. In terms of FY production outlook, Nikola expects delivery of between 300 and 500 trucks; with plans to level up production output the following year. It's critical at this stage that Nikola cement themselves as a leader in the EV truck market without getting ahead of themselves through setting unrealistic projections in a bid to win investment; something we often see with EV companies just starting production. 

With Trevor Milton’s ethical mishap in the past; and production underway, Nikola is incredibly well-positioned in its specific market space. Sentiment might need a little more sway as the company approaches delivery deadlines, earnings, etc; but all in all, Nikola has a lot to say for itself.