Nikola shares dropped as much as 22 per cent to US$38 in New York trading, after gaining 373 per cent this year through Friday
. Electric vehicle makers have lately caught the attention of U.S. investors amid a strong showing from industry front-runner Tesla, which has topped market expectations even as traditional automakers struggled with flailing demand in the pandemic.
While Nikola is still a long way from proving itself, asking customers to put down as much as US$5,000 to preorder its battery-powered truck without even seeing a prototype, the company has found some believers. Rosner said the current sell-off could create an attractive entry point into the stock, which is a “rare pure-play on zero-emission commercial trucks, whose adoption is poised to take off.
JPMorgan analyst Paul Coster, who upgraded the stock to the equivalent of a buy on July 8, said that although Nikola is a “story” stock, “we are on board as long as the company executes to plan.”
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