After Tesla's delivery exceeded expectations, electric vehicle concept stocks in the US stock market have become even more favored by investors. Even Nicola, which has been repeatedly shorted, and Nicola, which has been plagued by negative news, skyrocketed by more than 60% overnight due to a contract for 50 cars. Not only did it recover the stock price that had fallen this year, but it also set the largest single-day increase in three years.
The concept of electric vehicle stocks in the US stock market has recently shown signs of replacing artificial intelligence stocks, and an increasing number of previously unknown small electric vehicle companies are benefiting from this trend.
On Thursday, July 13th, Nikola, an electric pickup truck manufacturer, opened high and closed with a 60.87% increase in stock price due to its collaboration with BayoTech.
According to Thursday's news, BayoTech will purchase 50 Nikola Class 8 hydrogen fuel cell electric vehicles for zero-emission hydrogen transportation. At the same time, Nikola will purchase low-carbon hydrogen from BayoTech's hydrogen centers in Missouri and California, as well as up to 10 BayoTech HyFill transport vehicles to deliver bulk hydrogen to customer refueling stations.
Nikola is expected to start receiving low-carbon hydrogen produced in Missouri later this year, and from 2024, it will also receive low-carbon hydrogen produced in California.
Michael Lohscheller, CEO of NKLA, said:
Nikola and BayoTech share the common goal of providing reliable hydrogen supply nationwide. BayoTech's low-carbon hydrogen fuel and transportation equipment will play a crucial role in supporting the adoption of Nikola's Class 8 fuel cell electric zero-emission trucks.
Nikola is a zero-emission vehicle manufacturer based in Phoenix, Arizona, USA, named after Nikola Tesla.
Before being targeted by short-sellers, Nikola was once riding high and attracted many investors. In June 2020, Nikola went public through a reverse merger with a company called VectoIQ. On the first day of trading, Nikola's market value soared to $12 billion. On the third day, Nikola's stock price doubled, reaching a market value of $26.4 billion. On the fifth day, Nikola surpassed the century-old automotive giant Ford Motor in market value. It was a moment of glory for the company.
On September 10, 2020, the short-selling firm Hindenburg Research released a strongly worded report exposing numerous frauds by Nikola, labeling the company as a "fraud." Hindenburg concluded that Nikola engaged in extensive deception to create momentum, successfully turning its false statements into a $20 billion publicly traded company:
We have never seen such a massive fraud in a publicly traded company.
Since then, the company's stock price has been declining. Excluding Thursday's significant increase, the company's stock has fallen nearly 72% in the past 12 months. It is a heavily shorted stock, with 21% of its shares being sold short.
