Buy Nikola Stock or Not? Our future forecast 2022!

Christina Clarke
October 6, 2021
But how will the Nikola share develop? Are positive results to be expected? Is it worth to buy Nikola stock now? Is it safe to buy a share?
Buy Nikola Stock or Not Our future forecast 2021

Nikola Corporation (NKLA) is an American company that has unveiled a number of zero-emission vehicle concepts since 2016  and announced plans for future production of some of them. The company is based in Phoenix, Arizona, where corporate headquarters are located.

Nikola is a  provider of emission-free transport and infrastructure solutions. The company is a developer (and manufacturer) of battery-electric and hydrogen-electric vehicles, drives for electric vehicles, vehicle components, energy storage systems, and hydrogen filling stations’ infrastructure.

But how will the Nikola share develop? Are positive results to be expected? Is it worth to buy Nikola stock now? Is it safe to buy a share? This article covers the basic data on Nikola stock: price, ratings, outlook, analysis, forecasts, recommendations, history and where to buy the stock online best.

Table of Contents

What should you look out for when buying Nikola shares?

You should pay attention to the following points when buying Nikola shares:

  • Why should you invest in Nikola shares? Nikola has had a massive run and skyrocketed this year, but recent events have proven bad for the company. Many investors see Nikola as a value trap that may seem cheap at first but keeps getting cheaper and cheaper until the company is eventually bankrupt. However, there is currently hope for a big deal with GM. Should that deal happen, the stock could gain a lot in value in a short period of time.
  • Where can you buy Nikola shares? Nikola shares can be bought from any online broker. However, we recommend our test winner broker Roinvesting. In our opinion, Roinvesting is the absolute best stock broker, as you can buy stocks and ETFs here completely free of charge.
  • What can the future of Nikola shares look like? The last few weeks have been a real roller coaster ride for Nikola. The electric vehicle maker’s shares have fallen after a report accusing company founder Trevor Milton of making fraudulent claims and defrauding investors. Shares were even stronger when Trevor Milton later left the company, leaving questions about whether Nikola has a future without his infamous CEO at the helm. But is it a comeback insight? Some analysts are convinced of the future of hydrogen vehicles, and in the past few weeks, the stock has already regained a significant portion of the loss. Nikola is a risky investment, but it could be worth it in the future.

Where to buy Nikola shares? The best brokers for buying Nikola shares compared:

Rating

Min. Deposit

Min. Spread

Assets

Views

Positive Reviews

Negative Reviews

Likes

4.9/5
250
0.07
  • Commodities
  • Forex 40 +
  • Metals
  • Stocks
  • Indices
  • Cryptocurrencies
85
2
4.5/5
250
0.07
  • Metals
  • Forex
  • Indices
  • Cryptocurrencies
  • Commodities
  • Stocks

 

254
82
3
58
4.9/5
250
0.07
  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

480
80
3
50

Buy Nikola Stock or Not Our future forecast 2021

Where to buy Nikola shares? Our guide in 4 steps

Step 1: Choose a broker for Nikola shares

How can you invest in Nikola shares? The Nikola share investment is basically quite simple. It is best to use one of the numerous online brokers. It is generally very easy there to buy all kinds of stocks.

It is advisable to pay particular attention to deposit insurance. If the broker files for bankruptcy, your own deposits and shares are retained thanks to the deposit protection. Our test winner Roinvesting, for example, offers state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares.

The registration is done within a few minutes, and in most cases, you can start trading within a short period of time.

Before doing this, it is, of course, worthwhile to calmly evaluate the company because when investing, you should always analyze exactly where you are investing very hard-earned money. After the decision, you can place a buy order with most exchanges within a few clicks.

Stock selection and valuation can be very complicated. If you want it to be easier, we recommend a social trading platform. Here you just follow an experienced trader and automatically copy that trader’s trading decisions.

Our broker recommendation at this point is Roinvesting. At Roinvesting, valid EU regulation meets fair prices and a sophisticated platform. To register with Roinvesting, click here.

Step 2: Registration

If you have decided on a broker, you still have to log in with your data and verify your email address.

 You can then first try out the demo account extensively and free of charge. This has a number of advantages. Then when you are ready to trade, you still need to complete a  personal verification and deposit. To verify yourself, you need a valid ID and proof of residence (e.g. electricity bill) at Roinvesting.

Step 3: Deposit

After registering, you need to decide how much money to invest in stocks. We generally recommend that you never invest more than 5% of your capital in a single share. So possible losses are manageable.

However, how much you want to invest in Nikola shares is entirely up to you. First of all, of course, you first have to add funds to your new Roinvesting share account. To do this, simply click on ” Add money ” in this step.

Roinvesting offers various payment options with which you can deposit money into your customer account. The most popular payment options are  PayPal, credit card or bank transfer. It should be noted that a bank transfer usually takes 2-3 working days for the credit to reach the customer account. However, if you want to have your money in your account faster, there are other payment methods available.

Below is an overview of all the payment methods available at Roinvesting:

Payment optionpossible?
Buy Nikola shares with a credit card✔️
Buy Nikola shares with PayPal✔️
Buy Nikola Stock with Skrill✔️
Buy Nikola shares by bank transfer✔️
Buy Nikola shares with Neteller✔️
Buy Nikola shares with UnionPay✔️

Step 4: Buy Nikola stock

After the deposit, the money appears in your account under the menu item “Account”. All you have to do is search for the Nikola share using the search bar and select it. Then click on the “Trade” button.

A small window will open where you can set the price and the number of shares you want to buy. You can also set stop-loss and take-profit, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.

The Leverage field allows you to control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).

The purchase is completed with a final click on “Place order “, and the share appears in your portfolio. Congratulations!

Buy Nikola Stock or Not Our future forecast 2021

What is nikola?

Nikola was founded in 2015 by Trevor Milton. He named the start-up after Nikola Tesla. Many investors believe that Trevor Milton uses the famous inventor’s first name, as the last name would also be associated with a hugely successful electric vehicle company –   Tesla.

Prior to founding Nikola, Milton was CEO of dHybrid Systems, which developed compressed natural gas fuel systems. Milton served as CEO until the merger with VectoIQ, when he became Executive Chairman. He was replaced as CEO by Mark Russell. Russell joined Nikola in 2019 as President and has over 20 years of experience in the manufacturing industry. Prior to joining Nikola, he most recently served as COO and President of Worthington Industries, a steel products manufacturer specializing in pressurized gas cylinders.

Milton announced on Sept. 20, following claims in the Hindenburg Research report, that he lied to investors about Nikolas technology. As a result, he has been replaced as Executive Chairman by Nikola Board Member and former GM Vice President Stephen Girsky.

In contrast to the electric car manufacturer Tesla Inc. ( TSLA ), which uses electric cars charged by the classic plug-in, Nikola plans to build hydrogen fuel cell technology vehicles. Hydrogen fuel cells generate electricity by combining hydrogen and oxygen stored in a tank. Hydrogen fuel cell vehicles have similar advantages to pure electric vehicles but take less time to charge and have a longer range.

Tesla founder and CEO Elon Musk criticized hydrogen fuel cell vehicles and called the idea “stupidly stupid”. But many senior auto managers believe such vehicles have a better long-term future than pure electric cars.

Hydrogen fuel cells are not a new technology, but they have just been too costly to be widely used. However, these costs have decreased and are expected to continue to decrease in the future. In January, the Hydrogen Council, an industry group advocating the use of hydrogen, predicted that the cost of producing and distributing hydrogen could decrease by as much as 50% by 2030. The council said this would “make hydrogen competitive against other carbon alternatives.”

One of Nikola’s main initiatives, and one of the reasons the company wanted to raise money, is to start expanding its hydrogen station infrastructure. Manufacturing zero-emission hydrogen-electric trucks are just one aspect of the business. These trucks need hydrogen filling stations, and Nikola plans to build such stations across North America.

Nikola plans to use solar energy at its gas stations, which is supplemented by mains electricity. The electricity is then used to perform “hydrogen electrolysis,” which essentially involves passing electricity through water to split the water into oxygen and hydrogen, which can be used as fuel. In addition to trucks, the company plans to manufacture hydrogen-electric sports vehicles such as jet skis and off-road vehicles (Nikola Badger).

Information about the Nikola share: course, price and key figures

Before jumping into an investment, try to find out as much as you can about the security. First of all, it is important to take a closer look at the key figures.

Nikola shares exploded early and mid-year. The rate has risen from just over $ 10 to more than $ 90 in no time. Since the Hindenburg Research report, however, the company has lost much of this drastic increase. It currently stands at $ 25.29. Nikola currently has a market capitalization of 9.68 billion US dollars. For the past 52 weeks, the stock’s high was $ 93.99, while its 52 low was $ 10.22.

That said, the company currently has cash reserves of approximately $ 900 million. Of the current stocks, 63.41% are held by insiders and only 13.64% by institutions. Nikola has a particularly large short ratio of 1.6 and currently 43.43 million short shares with an average volume of around 22.32 million shares in the last 10 days.

For a short time, the Nikola share has been in a slight upward trend again, which was triggered by the latest rumours about a possible GM partnership.

Buy Nikola Stock or Not Our future forecast 2021

Nikola share news & history

Nikola was founded in 2015 by Trevor Milton. As of 2016, the first 5,000 Nikola One hydrogen-powered trucks were to be built by Fitzgerald in Byrdstown, Tennessee. “Gliders”, which are truck vehicle platforms without engines, are manufactured there.

In March 2019, Nikola acquired 389 acres in Coolidge, Arizona, for $ 23 million with future state and local tax breaks. Nikola said in 2019 that they expected construction of the truck factory to begin in 2020, truck construction in 2021, and production of 35 to 50,000 trucks per year by 2023.

In February 2019, Mark Russell was hired as company president. Russell most recently served as President and CEO of Nikola Corporation’s investor, Worthington Industries.

In April 2019, Nikola hosted the Nikola World event in Scottsdale, Arizona. The two-day weekday event included a public demo day showcasing the Nikola Two truck, Nikola Tre truck, Nikola NZT UTV and Nikola WAV watercraft.

In March 2020, Nikola announced plans to merge with VectoIQ Acquisition Corporation (ticker VTIQ), a publicly-traded special purpose vehicle led by former General Motors Co. CEO Steve Girsky. This resulted in the combined company being listed on the NASDAQ exchange with the NKLA ticker symbol. As part of the merger, Founder and CEO Trevor Milton’s title was changed from CEO to Executive Chairman, and Nikola President Mark Russell became President and CEO.

Nikola shares were tradable on June 4, 2020, one day after the merger was completed. By June 9, stocks had more than doubled since trading began as investors continued to bet on the growth potential of electric transportation. Nikola CEO Trevor Milton tweeted in early June that the company would start taking reservations for the pick-up, the Nikola Badger, starting June 29.

The company was valued at approximately $ 13 billion in early August 2020, compared to revenue of $ 80,000 in the first half of 2020 (of which $ 36,000 was a solar installation for CEO Milton).

On September 8, 2020, Nikola and General Motors announced a partnership through which GM would acquire an 11% stake in Nikola (valued at approximately $ 2 billion at the time of the announcement). GM would also have the right to nominate a member to the Nikola board of directors. In return, GM has agreed to provide production facilities to the start of the Badger and Nikola worldwide to supply fuel cells and batteries. Nikola shares rose 50% after the announcement.

On September 20, 2020, Milton resigned as Executive Chairman on fraud allegations made in a report released by Hindenburg Research while allegedly maintaining his stake in the company. News of the researcher’s allegations caused Nikola Corp’s stock price to fall 20%. After his resignation, Steve Girsky became chairman of the board of directors. It is not clear at this point in time whether the GM deal will take place.

Nikola share buy or not? Our recommendation
  • Possible GM deal
  • If hydrogen vehicles catch on, Nikola could become a world leader
  • Fraud allegations
  • So far, no profit and almost no turnover
  • From a fundamental point of view, the Nikola share is far too expensive
  • So far, one vehicle has been produced

Nikola share: buy or sell?

What are the advantages of buying?

The future is green. Nikola stock is expected to cause quite a stir in the coming weeks as well. As the Nikola stock rallies have demonstrated, there is a tremendous desire on the street to invest in the next very successful maker of electric vehicles. Moreover, with oil prices rising again, alternative energy values ​​are also rising again.

New vehicle deal. Nikola recently announced it had won an order for 2,500 battery-electric garbage trucks from Republic Services. Under the deal, Republic has the option to purchase an additional 2,500 battery-electric trucks from the company. A Deutsche Bank analyst Emmanuel Rosner believes the deal “confirms the company”.

Possible GM deal. So far, there is no final decision about a future for GM and Nikola. For a while after the Hindenburg report, it looked like GM was no longer interested in investing in Nikola. However, there are new rumors that GM continues to plan to aggressively invest in electric and hydrogen vehicles and that Nikola remains a possible candidate for that investment.

Buy Nikola Stock or Not Our future forecast 2021

What are the advantages of selling?

Debt and finance.  Potential investors need to be aware of the fact that Nikola does not generate cash. So the company needs to raise capital in other ways – whether through issuing additional equity, debt, or both. According to the company, the Arizona manufacturing facility requires a large capital investment of $ 600 million

Given the company had $ 75.5 million in cash as of the end of the first quarter of 2020, the need to secure additional cash is a certainty. While the company only has around $ 4 million in debt, it would not be surprising if it decided to raise capital by tapping into the debt market. However, investors should be aware of the fact that the company may forego the burden on its balance sheet and raise equity instead. In this case, the shareholders suffer from a dilution of the Nikola share.

The Hindenburg Report. Nikola pushed back Hindenburg’s report, claiming it contained “dozen” inaccurate claims. Finally, however, the Phoenix-based company confirmed a claim made in Hindenburg: it staged a video showing a Nikola truck operating on its own when it actually wasn’t. This means that Nikola has not yet made a working prototype.

Nikola share forecast, dividend and price target for 2021

The Nikola share had a turbulent 2020. After the stock had proliferated, the crash was just as rapid and harsh. In the past few weeks, however, there have been renewed hopes for a bright future for the company. So, could an investment in Nikola be worthwhile? The stock is cheaper than it has been for a long time, and many analysts also agree that this is an excellent time to buy.

6  analysts have currently recommended the Nikola share. Of the 6  analysts, 3 have a buy recommendation, 2 analysts have a “hold” recommendation and only 1 analyst recommends selling Nikola shares.

It is also interesting to look at the analysts’ price target for the NASDAQ-listed Nikola share. The highest analyst price target of Nikola lies at 47.00  US dollars. This corresponds to a price gain of an unbelievable 84.7%. Nikola shares, however, sees the lowest price target at 15.00 US dollars, which corresponds to a price loss of 41.1%.

On average, the analysts see the price of Nikola shares in one year at 30.50  US dollars. This corresponds to a price gain of 19.8% compared to the current price.

Nikola vs. Other electric vehicle companies

Electric cars are the future. As a result, more and more companies are turning to renewable energies. But how well is Nikola positioned in this highly competitive market? Does the company stand a chance against Tesla, NIO and VW?

Tesla stock

  • Profitable for 5 quarters
  • Largest and best-known electric car manufacturer in the world
  • Admission to the S&P 500
  • Incredibly high P / E ratio and therefore greatly overrated from a fundamental point of view

Nio share

  • Protected from bankruptcy by Chinese state
  • Good market position in China
  • It has been in a strong upward trend since the beginning of the year
  • Negative balance sheets
  • Strong competition in China from Tesla’s new mega factory
  • The company is dependent on outside capital

VW share

  • Liquid company
  • 7x research & development budget like Tesla
  • Highly diversified company
  • VW electric cars are not very popular so far

Fees when buying Nikola shares

We compare the fees of the largest brokers with the following example:

  • Purchase of Nikola shares worth € 1,000
  • Hold Nikola shares for one month and then sell
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, Roinvesting & Plus500 :

ProvidersLibertexRoinvestingPlus500
Depositfor freeFor freefor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20Spreads3.08%
Total fees€ 4.40Reasonable€ 92.32

Conclusion: is the Nikola share a good investment? Our rating

Nikola has already invested a lot in research and development. The potential opportunity is enormous. However, if investors want to bet on an early-stage company, which Nikola undoubtedly is, they have to trust that the company can take advantage of its opportunities. Given recent events and Nikola’s reaction to those events, it is difficult to have that confidence.

That being said, let’s ask ourselves the following key question. What exactly do investors buy with Nikola shares? You get trucks, which are not yet functioning. You get inverters that will be developed at some point. The truck design allegedly came from a third party.

It still seems like $ 9 billion is a lot to pay for these intangibles. However, unless Nikola can demonstrate that it has an edge in electric vehicle development and regains investor confidence, Nikola stock cannot do itself. For this reason, we recommend an alternative such as Tesla or Nio.

Now, of course, every investor has to decide for himself whether the hope for a rosy future for the company justifies an investment.

If you want to buy Nikola shares, we advise you to do this with our test winner broker Roinvesting, because Roinvesting pays 0% commission when buying shares.

 

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FAQs

According to experts and analysts, most of the signs point to Buy. There is currently a slight upward trend in the share. Nikola stock is also significantly cheaper than it was recently. Nevertheless, we recommend an alternative system such as Tesla.

Definitive! Even if we’re not 100% convinced of the future of Nikola at the moment, there are definitely hopes for the stock. If the company prevails, the potential opportunity is enormous.

Nikola has been listed on the American NASDAQ since going public.

We generally recommend not investing more than 5% of the capital in a share. How much you invest in a particular stock is ultimately up to the investor. There is always a risk!

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