In this video, we’re looking at Nikola Stock (NIK) and discussing the news that’s impacting the stock.
Nikola (NASDAQ:NKLA) shares fell nearly 3% in early trading Thursday after reporting a larger 3Q loss. The electric automaker lost money after suspending sales and recalling battery-electric heavy-duty vehicles.
After an investigation found a battery pack coolant leak caused recent fires, the business recalled all 209 battery-powered electric trucks and ceased sales in August. Nikola estimates to spend $61.8 million on truck recall and repair costs, including re-engineering, verifying, and installing a replacement battery solution.
The net loss for the quarter ending September 30 was $425.8 million, up from $236.2 million last year. Production was paused again this year after the recall notification, after a May assembly line optimization break. The company’s cash balance rose to $362.9 million by September after securing $250 million in the third quarter.
Despite the bad news, Nikola Stock is moving higher today. Let’s take a closer look at what’s driving the stock higher and see if there’s any potential for further upside.
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