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All discussion of Nikola Motors
- Thread starter Buckminster
- Start date
Last edited:
This won't travel well into tomorrow.
Anyone who still likes NKLA, cause you know, BEVs, get your powder ready for the 20s and teens.
If you still like it that is.
lafrisbee
Active Member
I am blown away by Nikola NOT collapsing yet...
This is On Topic for two reasons.
1) Nikola is the biggest story out there at the moment. Bigger than Tesla. Tesla going up 10% is boring to non-shareholders. But a train wreck! Eyes are on the "EV Maker." Now will it create a more negative or positive view of Tesla. And thereby attract more money ...
And
2) Some of the poor fools that get out of Nikola are going to go, "Well damn, what I got left I better put where I should have in the first place but I was too greedy. Tesla."
This is On Topic for two reasons.
1) Nikola is the biggest story out there at the moment. Bigger than Tesla. Tesla going up 10% is boring to non-shareholders. But a train wreck! Eyes are on the "EV Maker." Now will it create a more negative or positive view of Tesla. And thereby attract more money ...
And
2) Some of the poor fools that get out of Nikola are going to go, "Well damn, what I got left I better put where I should have in the first place but I was too greedy. Tesla."
uujjj2
Member
Whenever GM CEO Mary Barra is asked about Nikola and due diligence, she gives an evasive answer. If you look at the GM-Nikola deal, it's really one-sided, with Nikola paying GM $2B in stock and $700M in cash for the right to buy GM-designed, GM-made electric and fuel cell pickups and then slap Nikola badges on them. I think GM knows full well that Nikola is a sham, and the reason Nikola is giving GM so much money to implement all the technology Nikola claimed is because GM knows Nikola doesn't have the capability to do anything.
CNBC about 10 minutes ago just discussed them and what appears to be a little more regulatory scrutiny as well as a second missive from Hindenburg alleging they have admitted the truck was only coasting. CNBC said Trevor had not responded to their inquiries for a comment.
Also a lot of discussion of GM and how they really are not on the hook for much. I note GM uses the word "appropriate" in their discussion of due dilligence. Seems to me to give them a little wiggle room, just my opinion. Probably more to come... so YMMV.
Oh. The dots, connected:
"Nikola came on investors’ radar in early June when its shares began trading after completing a merger with VectoIQ Acquisition Corp., a so-called special-purpose acquisition company run by former GM executive Steve Girsky."
From: Justice Department Probes Electric-Truck Startup Nikola Over Claims It Misled Investors
"Nikola came on investors’ radar in early June when its shares began trading after completing a merger with VectoIQ Acquisition Corp., a so-called special-purpose acquisition company run by former GM executive Steve Girsky."
From: Justice Department Probes Electric-Truck Startup Nikola Over Claims It Misled Investors
bkp_duke
Well-Known Member
I rarely short stocks, it leaves a bad taste in my mouth, but I'm seriously considering shorting NKLA. Seems almost like a sure bet. Am I missing something in this thinking? GM swooping in and saving the day? Something else perhaps?
Knightshade
Well-Known Member
Look up the borrow cost on NKLA.
That's what you're missing.
Puts of course remain an...option.
PV4EV
Member
He has a strategy ?!?
I know Nikola had planned to enter Pikes Peak to show the world something amazing etc etc.
.. but they've withdrawn, as Trevor has just realised its up hill.
.
JohnSnowNW
Active Member
I have a put option (just the one) that I snagged yesterday when the stock was unreasonably high. I have to admit with all of this information flowing in I'm not sure when the best time to sell would be.
Causalien
Prime 8 ball Oracle
Yes, interest on borrowing shares as well as option premium is enough to bankrupt you.
Ex, the put option I bought to bet that Trevor is a fraud is still not profitable due to the premium crush. Unless you bought in the 2 important days that they jumped up by a lot, you are not making money.
I never short stocks for the same reason. Instead of rooting for success, you are now hoping for a disaster. But I agree with you, NKLA sure is testing my resolve! I'm now just left with learning about human behavior by watching from afar.
It has been interesting. In the past, I've owned a stock or two that had to restate past financial results. Oh Boy. The stock price punishment for that is swift indeed. But this one, which mostly alleges technological and managerial incompetence, is much more muted. It looks like NKLA investors can't properly evaluate what it takes to be a vehicle manufacturer, which is a freakishly hard thing to do. And it isn't only retail investors, you had big institutional investors invest in the SPAC IPO and the SPAC money managers had to do due diligence too.
While Theranos wasn't public, it went through many VC and corporate investment rounds. Each round had people doing due diligence. Like actually digging into the company. And yet they were completely hoodwinked.
So, I don't know. Are people just riding momentum? They don't care about the underlying company because this market is going to make everyone rich? It is smelling a bit too much like March 2000 to me....
bubb
Member
I think this stock is radioactive and not fit for a serious play unless you *really* know what you are doing, be careful. I bought a handful of October and January puts during the spike and I think I'll just take profits and watch from the sidelines tomorrow. It really sucks that these guys are (at best) such clowns and might set back the transition to sustainable transport, but if they crossed legal lines they definitely need to be held accountable.
I don’t know about 2000 but I will say that people are gambling in the stock market, probably as a result of the advent of both robin hood and wallstreetbets speculators propping up these no name stocks. And then you add SPACs, option trading and Fed pumped liquidity to this list and you have the perfect storm. It will end badly for a lot of folks crash or not.
I think Dave was referring to how the fed’s position has evolved during this crisis. The fed is now essentially going after job creation and ensuring rates remain low to allow for growth.
On the flip side there are clearly some great companies with valuations now slowly making more sense. So overall my sense is the smart investor will be fine even if there is a crash. The market is overdue for a correction and the eventual correction will wipe out the speculative companies and the investors putting money into these speculative companies. NKLA might go down even before the correction.
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