Nikola Corp stock - price, description, and characteristics

Nikola seeks to create greener alternatives to traditional vehicles through its hydrogen and electric trucks and renewable fuel infrastructure. The company has ambitious plans to transform the industry and reduce its environmental impact.
 
Its main products include vehicles such as the Nikola Tre and Nikola One, combining hydrogen and battery power, as well as the Nikola Badger electric pickup truck. The company is also building hydrogen refueling infrastructure to support its vehicles and facilitate fuel availability.

Nikola stock performance

Nikola (NKLA) has only really been traded since March 2020, when there was a huge surge that shot the share price up tenfold. However, with the rapid rise came a rapid fall. After Nikola’s previous CEO, Trevor Milton was fired and allegations of fraud surfaced, the old SPAC's stock saw a sharp drop. Meanwhile, during May 2023, we feared the delisting of the company from the stock market as the price of a share fell well below $1.
 
But Nikola avoided the delisting by signing contracts to supply its trucks to several companies. The latest is J.B. Hunt Transport, which will buy 13 trucks from Nikola. In addition, Nikola has announced several new partnerships in hydrogen delivery and fuel infrastructure. Investors were also pleased with moves that will help the automaker strengthen its financial position.
 
A few months ago, Nikola also announced it would sell its hydrogen center in Arizona to Australia's Fortescue Future Industries to reduce its capital expenditures and raise additional cash. The surge in share price has also brought Nikola back in line with Nasdaq's stock listing requirements, at times even moving above $3.
 
However, further intent to raise capital through the issuance of new shares, poor financial results (low sales and high losses) and the overall negative sentiment in the EV market (concerns about slowing demand in China) brought Nikola back down to the $1 level, representing a capitalization of around $1 billion. In addition, higher interest rates are making debt servicing even more expensive. Further sales of its shares may push capitalization lower again.
 
The company has maintained a downward trend and has lost most of its value over the past three years following the pump-and-dump pattern in 2020. The COVID-19 pandemic as well as the indictment of its former CEO has had an impact on the automaker's stock.

Trading Nikola (NKLA) with Purple Trading

To start your Nikola Corporation CFDs trading, first you need to locate the ticker NKLA on our Purple Trading Metatrader 4 platform. To open a trade, either double click or press the new order button and the following window will pop up.

Lot value calculation

When you open our Metatrader 4 platform and click on the NKLA ticker, you'll observe that the minimal volume for trading Nikola Corporation CFDs is one lot (1.0). If you trade one lot, you will gain or lose 10 USD for each 10 USD the stock makes as you are buying at a 1:1 ratio (1 lot equals 1 share). For example, you buy 5 lots at 5 USD, and Nikola goes to 6 USD. Your total profit will be 5 USD (calculated as 1 USD (100 cents) movement * number of lots/shares per the move). The same logic applies to calculating your profit or loss when entering a short position.

Keep in mind that NKLA is quoted in US dollars, therefore if your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate.

You can trade at the current market price (market execution) or utilize pending orders, (limit and stop orders). You can initiate the trade without the stop-loss and take-profit orders now and add them afterwards.