How high can NKLA shares go?

March 27, 2022

The electric truck maker saw its stock rising after the company announced that it delivered its first electric truck. It’s planning to deliver more soon. This announcement came after the company suffered a big decline in stock price due to doubt about the companies’ credibility and inability to deliver vehicles.


NKLA shares hit a record high of $93.99 a share soon after the IPO but came all the way back down to $6.41 due to the accusation of fraudulent activities by founder Trevor Milton, 39, of Oakley, Utah. He has since resigned from Nikola.

Bears case is that NKLA is a fraud and doesn’t have the product ready to manufacture and deliver which was true until the company announced their first electric truck delivery last month. The second reason to be bearish is that even if the company delivers, they will need capital to invest and grow which means more stock offerings.



Bulls case is that NKLA is working on a product for the market that is hungry for electric vehicles. These vehicles are visually appealing and operating in a sector that is hot and profitable. In addition, NKLA is targeting manufacturing pickup trucks which is also highly profitable endeavor.

Business Outlook verbatim per NKLA

Nikola looks forward to achieving the following milestones in the fourth quarter of 2021:

·        Deliver pre-series Nikola Tre BEVs for use on public roads hauling customer freight;

·        Announce additional fleet testing dealers/customers;

·        Purchase land for our first centralized hydrogen production hub facility and/or commercial on-site gaseous generation station; and

·        Announce additional hydrogen infrastructure/ecosystem partners


So what’s next?


NKLA stock has the potential to become one the best performing stocks in 2022 if the company keeps delivering on their promises. The company Cap Market is around $4B, which means that the price has room to run. However, it must be considered that this is based off of the speculation that the company will deliver on their promises. They must gain back the trust of investors.