Over the past year, electric vehicle stocks have been on the radars of many investors and many of them managed to record notable gains.
However, the past three months have not been great for the electric vehicle firm Nikola Corporation (NASDAQ: NKLA), which has seen its stock decline by as low as 50% over the course of the past three months alone. On Tuesday, the situation remained the same as the stock continued to decline.
In recent times, the electric vehicle sector has come under pressure owing to sky-high valuations and not entirely convincing business plans. That has resulted in a decline in investor interest for companies like Nikola, which are yet to post any revenues. As a matter of fact, Dan Ives, an analyst at Wedbush, recently cut his price target for the Nikola stock to $13 a share from $25 a share. While he believed that the company’s hydrogen fuel cell and electric vehicle ambitions aren’t impossible, he expressed doubts whether Nikola could execute its plans in a timely manner.
Finance and Entertainment Reporter
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