- The company's chairman announced the commencement of booking of the electric truck Badger from 29 June
- Tesla's rival considered to be Nikola, both companies manufacture electric vehicles
Jun 09, 2020, 05:28 PM IST
On Monday, shares of Elon Musk's Tesla rival Nikola Corporation registered a sharp jump. Shares of the company closed 104 percent up at $ 73.27 after day trading on Nasdaq, the leading stock market in the US. The previous trading day on June 5, the company's stock was valued at $ 35.97. Even after the market closed, the company's stock recorded a jump and rose 30 percent to $ 95 a share.
That's why the company's shares rose
Trevor Milton, founder and chairman of Nicola Corporation, in a tweet on Monday, revealed plans to bring his upcoming electric truck Badger. Milton had said that the company would start booking Badger from June 29. Investors then bought Nikola shares fiercely. This led to a sharp jump in the company's shares. Earlier, the company said it would raise $ 10 billion in potential revenue from pre-orders. The company has so far received bookings for 14,000 fuel shell electric trucks.
The company's mcap became $ 26 billion
A sharp rise in market capitalization (mCap) of Nikola Corporation has also been registered due to the surge in shares. With this boom, the company's total mcap was $ 26 billion. With this growth, Nikola Corporation has come close to Ford Motor Company in terms of mCap. Ford Motor Company's mCap stood at $ 29.94 billion on Monday.
Company's income will be zero in 2020
An estimate about income was offered by the company. According to this estimate, the company's income will remain zero in 2020. This means that the company will not have any income this year. The company has estimated that it will reach $ 1 billion in revenue only after 2023. Ford Motor has generated $ 115 billion in revenue this year. The shares of Nicola Corporation are currently the best performer in the automotive sector on Nasdaq, after Tesla Inc. and Hertz Global Holding Inc.
Nikola Corporation was started in 2016
Nikola Corporation was founded in 2016 by Trevor Milton, a former executive and board director of General Motors Company. This company has announced to make several types of electric trucks. For this, the company is considering setting up a 1 million sqft plant in South Finox, USA. The plant is expected to start production of trucks by 2021. The company plans to achieve a capacity to manufacture 30,000 fuel shell electric trucks every year by 2027. Milton founded Nicola Corporation for the purpose of producing zero emission trucks.
Share price of major auto companies on Nasdaq on June 8
|Tesla Inc.||$ 949.92||7.26%|
|Ford Motor Company||$ 7.53||2.59%|
|Nikola Corporation||$ 73.27||103.7%|
|Hertz Global Holding||5.53 dollars||115.18%|
|General Motor Company||30.68 dollars||0.23%|