American hybrid truck design and manufacturing company, Nikola Corporation, becomes increasingly popular as the world anticipates the release of their first vehicle
Nikola Corporation’s story in the EV market is an interesting one as the electric truck start-up has seemingly taken on electric car manufacturing giants even before the release of their first vehicle. Since Nikola listed on the Nasdaq in early June, the company’s share price has more than doubled, sending its market value to $26.3bn. The electric truck company that is yet to deliver a single-vehicle already has a market value that is higher than industry giants like Fiat Chrysler.
Nikola was founded in 2014 in Salt Lake City, Utah. However, the company has become increasingly popular in recent times, particularly on social media, following the founder’s controversial statements on several platforms, including Twitter. Nikola primarily focused on developing commercial trucks until recently. The company has reportedly won financial backing from Bosch and companies connected to the family of Fiat’s founder Giovanni Agnelli. It also claims brewing giant Anheuser-Busch as a client.
The firm was able to raise about $500m before its listing. However, the company has not generated any revenue, losing more than $33m in the first three months of the year. Nikola estimated its net worth at about $3.2bn while preparing for its listing and subsequently raised over $700m in the debut, which will go in part to the building of its manufacturing facility.
The firm has stated that it already has over $10bn in pre-orders for commercial trucks and has revealed that delivery will start next year. Nikola will also start to accept orders for the Badger pick-up truck on 29 June. The spike in the company’s share price was one of the factors that led Nasdaq to hit another record.
The gains follow the firm’s announcement on Twitter as to when it would accept orders for its pick-up truck. The dramatic surge almost immediately drew comparisons to more established brands like Tesla. While the company still has much smaller sales and a long unfortunate history of financial losses, Tesla has also seen its market value eclipse traditional competitors.
The Chief Executive of Nikola, Trevor Milton, took to Twitter to celebrate the share price gains, echoing the social media presence of Tesla boss, Elon Musk. The billionaire said his sights are set on overtaking Ford’s best-selling F-150 pick-up truck, promising to do his ‘part to be the most accessible and direct executive on Twitter.”
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