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NIKOLA CORPORATION

Analysis before buying or selling Nikola Corporation shares

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Before launching into trading on the Nikola Corporation share price we offer you the opportunity through this dedicated article to learn about this company with detailed and useful information on the Nikola Corporation that will assist you in your analyses. You will find information on the activities of this American company and its sources of revenue as well as a presentation of its major competitors on this market and recent strategic partnerships. We will also explain how to achieve a comprehensive fundamental analysis of this asset.

Elements to consider before selling or buying Nikola Corporation shares

Analysis N°1

We could initially examine the current legislation and regulations a little more in detail in the United States particularly relating to environmental issues that could favour this group’s activities with its ecological vehicles.

Analysis N°2

You should of course monitor carefully the investments completed by the Nikola Corporation in research and development as innovation is at the heart of its strategy and enables this company to differentiate itself from its competitors.

Analysis N°3

This competition should also be subject to a careful analysis. We would therefore follow the arrival on the market of new companies in this activity sector as well as changes in the market position of other companies already present.

Analysis N°4

In the same way, it is recommended to pay particular attention to the strategy implemented by the Nikola Corporation with the objective of developing in other markets on an international level as it is currently present mainly in the United States.

Analysis N°5

Finally we would also follow the strategic operations undertaken by this group such as partnerships, mergers or acquisitions of other companies with the aim of generating more profit or increasing visibility or profitability.

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General presentation of Nikola Corporation

We now offer you the opportunity to learn more about the Nikola Corporation with information on its precise activities and how this company generates its income. It is clearly necessary for you to know its activities in detail to understand the future challenges faced by this company and the problems it has to face.

The Nikola Corporation is an American company that exercises its activities in the hydrogen battery sector as well as that of motorised sports vehicles. This company previously operated under the name VectoIQ Acquisition Corporation.

More precisely, this group currently supplies zero emission transport and infrastructure solutions, mainly to the United States market.

It also markets a large range of products among which are class 8 electric fuel cell and hydrogen powered commercial lorries, all terrain vehicles and boats. Among the top products of this company we note the following models: Nikola One, Nikola Two, Nikola Tre and the Nikola Badger.

In the motorised sports sector, the group sells the following models: The Nikola NZT, the Nikola Reckless and the Nikola Water Adventure Vehicle or WAV.

This group currently employs over 250 people.

Analysis before buying or selling Nikola Corporation shares
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The major competitors of Nikola Corporation

To deepen your understanding of the Nikola Corporation we will now examine the direct competitors of this company in some detail. In fact, this American group is one of the leaders in its sector but still has to face some serious competitors as follows:

Tesla 

Of course, the largest current competitor of the Nikola Corporation is none other than the giant Tesla Company, previously known as Tesla Motors. This is an American automobile manufacturer specialised in electric vehicles of which the head office is based in Silicon Valley. This group was created in 2003 by Martin Eberhard and Marc Tarpenning, its current CEO is Elon Musk. Tesla’s original objective was the acceleration of global transition towards a sustainable energy system through the stimulation of electric powered automobile competitiveness.

Byton

This is another major competitor of the Nikola Corporation particularly concerning its abilities for development on an international level. Byton is actually a Chinese company specialised in vehicle manufacturing which was created in 2018.

Karma Automotive

Finally the third and last competitor to the Nikola Corporation that we shall examine here is the Karma Automotive Company, previously known as Fisker Automotive. This is an American group also specialised in vehicle manufacturing. It was created in 2007 by a Danish designer who notably created certain well known automobiles such as the BMW Z8 and the Aston Martin V8 Vantage.


The major partners of Nikola Corporation

Although a thorough knowledge of the direct competitors of the Nikola Corporation is important for successfully completing an analysis of this asset, it is also important to take into account the strategic partnerships that this group has implemented with other companies. We therefore now offer you the opportunity to learn about some particular examples of strategic alliances in the past that will enable you to understand their advantages:

General Motors 

Firstly, the Nikola Corporation became allied with the General Motors Group a few years ago for the creation of certain vehicles including the Nikola Badger pick-up. This partnership also enabled a reduction in costs for certain programmes of the Nikola Corporation including the Nikola Tre, Nikola One, Nikola Two and NZT. Also through this agreement Nikola became able to use the General Motors Ultim battery system and the Hydrotec fuel cell technology.

CNH Industrial

Another advantageous and relatively recent partnership you should be aware of was signed between the Nikola Corporation and CNH Industrial. Through this agreement, CNH Industrial became a shareholder in Nikola for the amount of 250 million dollars. This agreement came about when the CNH Industrial vehicle manufacturer decided to split into two and list its lorry, bus and engine division with the aim of increasing value and creating more specific activities. This restructuring was planned to continue into 2021 and enable the creation of a company dedicated to its agricultural and construction activities as well as another quoted company with Iveco’s assets.

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Positive factors for Nikola Corporation shares
The factors in favour of a rise in the Nikola Corporation share price:

To go further and understand how the Nikola Corporation group will be able to advance its growth or face future threats, it is essential to understand the major strengths and weaknesses of the company. In order to do this, it is essential to know the major strengths and weaknesses of this company, which we will present here in detail.

We will begin this comparison of Nikola Corp's strengths and weaknesses with its main assets and therefore its strong points that can support the evolution of its share price:

  • First of all, we can underline the quality and strength of the business models used by the Nikola Corp group in the context of the commercialisation of the hydrogen energy technology used to manufacture heavy trucks. This strategy allows the group to generate comfortable revenues and reduce costs.
  • It is also noted that the total cost of ownership is lower for customers, which gives it an advantage over the competition.
  • The Nikola Corporation group also has a unique value proposition and is particularly effective in penetrating the highly promising hybrid electric truck market for the long-haul truck segment. Indeed, Nikola Corp is one of the current leaders in this sector and could benefit from the very significant profits that this sector will generate in the years to come in view of the current climate and environmental challenges.
  • Another advantage of Nikola Corporation is its partnership strategy. Indeed, the company very regularly sets up strategic alliances with other players in this market, but also and above all with players in other fields, including the innovation sectors, which help it to develop new products or increase its presence on the market.
  • Finally, the group shows a certain financial solidity with satisfactory results over the long term and a strong increase in profitability over the last few years. It also benefits from a significant cash position which should enable it to make new investments in the future.
Negative factors for Nikola Corporation shares
The factors in favour of a drop in the Nikola Corporation share price:

Of course, as we mentioned briefly in the introduction to this section, Nikola Corp does not only have its qualities and advantages, but also some major flaws that you should be aware of before you start analysing this stock. Here are its main weaknesses at the moment:

  • Firstly, the group is currently experiencing certain shortcomings in terms of technical progress in the face of competition that is investing heavily in research and development. It is therefore necessary for the Nikola group to accelerate its new developments in order not to lose its position.
  • The Nikola Corporation group lacks certain advantages in terms of infrastructure. The company has little existing infrastructure compared to other companies in the sector, which tends to slow down its production and make it more difficult to meet the growing demand.
  • Nikola Corp has also squandered its pioneering advantage by allowing itself to be overtaken by competitors using similar technologies and who have made larger investments and, above all, greater financial resources.
  • Finally, the last disadvantage of this group is that it has a relatively uncompetitive pricing policy, which could lead to lower sales in the future.

In your future analysis of Nikola Corp's share price, you should consider these strengths and weaknesses and how they may influence the company's response to certain issues or events. Of course, these elements may change over time and need to be verified.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When was the Nikola Corporation share price initially quoted on the stock markets?

The Nikola Corporation made its initial public offering in June 2020. The initial quote was on the Nasdaq Global Select Market in the United States where this asset is in fact still quoted. It should be noted that this introduction was a true success as only two months afterwards the stock market capital of this group came to over 13 billion dollars, equal to twice that of the French automobile manufacture Renault.

Is it possible to trade in the Nikola Corporation share price online?

Although certain financial placement products enable you to buy Nikola Corporation shares outright to add to your stock market portfolio it is also possible to speculate directly on this asset online. To do so it is best to use the services provided by online brokers when speculating on the rise or fall in this share price.

Which technical indicators should you choose to analyse the Nikola Corporation share price?

When completing your technical analysis on the Nikola Corporation share price you should use various different types of indicators. It is in fact recommended that you use trend and volatility indicators including the reversal or acceleration points or levels.

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