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Nikola share maintains hold rating, steady target after deliveries report

EditorNatashya Angelica
Published 07/02/2024, 02:40 PM
NKLA
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On Tuesday, TD Cowen maintained a Hold rating and a $10.00 stock price target on Nikola Corp . (NASDAQ: NASDAQ:NKLA), following the electric vehicle manufacturer's latest deliveries report. Nikola has surpassed its delivery expectations for the second quarter of 2024, having delivered 72 Class 8 hydrogen fuel cell trucks, which is above the company's guidance of 50-60 units.

The company has demonstrated significant progress in the first half of 2024, with a total of 112 fuel cell electric vehicle (FCEV) deliveries. This performance indicates a strong start to the year and suggests that Nikola is gaining momentum in its operations.

The analyst from TD Cowen expressed optimism about this development and is looking forward to the upcoming earnings call. During this call, further insights are expected regarding whether Nikola is on track to meet its delivery guidance of 300-350 FCEV units for the full year of 2024.

Nikola's ability to exceed its delivery targets in the second quarter is a positive sign for the company, which has been working to establish itself in the competitive electric vehicle sector. The delivery of these 72 trucks represents a step forward in Nikola's efforts to bring zero-emission transportation solutions to the market, specifically in the Class 8 truck segment.

The market will be closely monitoring Nikola's upcoming earnings call for updates on the company's performance and future outlook. The call is anticipated to provide investors and stakeholders with detailed information on Nikola's operational strategies and whether it can sustain its current momentum through the remainder of the year.

As the industry continues to observe Nikola's progress, the maintained Hold rating and price target reflect a cautious but watchful stance on the company's stock. Investors are advised to pay attention to the forthcoming earnings call for any potential adjustments to the company's delivery targets and overall business trajectory.

In other recent news, Nikola Corporation has seen significant developments in its operations. The company reported an 80% increase in Q2 deliveries of its hydrogen fuel cell trucks, surpassing its own sales forecasts with 72 units delivered.

This strong performance indicates a growing demand for hydrogen-fueled heavy-duty vehicles, a promising alternative to traditional fossil fuels and battery-electric vehicles. Nikola also secured a substantial order of 100 hydrogen fuel cell electric trucks from AiLO Logistics, signaling a shift towards decarbonization in the trucking industry.

In addition, Nikola announced a 1-for-30 reverse stock split, a strategic move aimed at enhancing its corporate structure. This decision will consolidate every thirty shares of issued common stock into one share, affecting all shareholders uniformly and not altering any shareholder's percentage ownership of the company, barring minimal changes due to the elimination of fractional shares.

These are recent developments, reflecting the current state of affairs in the EV industry. It's important to note that these updates are based on the views and analysis of various market analysts and not the views of this publication.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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