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Tesla, Nikola, and the Weirdness in EV Stocks

Barrons2021-03-17

It’s getting strange in EV-land and this time it isn’t just Tesla.Should investors be worried?

Electric vehicle investors are used to a little weirdness. There are, after all, Elon Musk tweets featuring a dog in haute couture. And the Tesla Cybertruck, due to be delivered later this year, looks like something out of a Mad Max/Blade Runner crossover movie.

Still, Tesla took weirdness to another level Monday when, in a regulatory filing, the company announced Musk’s title now included “technoking”and that CFO Zach Kirkhorh would also be known as the title “Master of Coin.”

And then there is EV truck maker Nikola,whose stock has dropped 66% since September. Monday afternoon, it filed a prospectus with the SEC indicating the company planned to sell stock. Companies don’t usually issue cash at low stock prices if they don’t need the money now. Nikola now has more than $800 million in cash on its balance sheet. Its stock is down more than 2% Tuesday morning.

And remember, last week EV start-up Canoo took a page out of Tesla’s book by launching a pickup truck that looks a little like a space pod. And the proposed vehicle has more hidden compartments and pullouts than a puzzle box.

Investors expect such oddities from Elon Musk and Tesla. Whether they will from other EV makers remain to be seen.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • TheStig1238
    ·2021-03-17
    :)
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  • Holla
    ·2021-03-17
    Like my comment if u long Tesla!
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    • YenChing
      Comment
      2021-03-17
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  • Kanyon
    ·2021-03-17
    Ok!
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  • Poopingmons
    ·2021-03-17
    EV?
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  • hzhengkai
    ·2021-03-17
    Technoking 
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  • Seachelle
    ·2021-03-17
    EV is the future for automotive. We invest the future! 
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  • francis3
    ·2021-03-17
    Be carful when investing in EV stock as day traders are crazy of it and causing the rises and falls in the market
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  • boonhong21
    ·2021-03-17
    EV is the future. Please like and comment [開心] 
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    • clarenceng
      like pls
      2021-03-17
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    • boonhong21
      Thank you
      2021-03-17
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    • Alvin1975
      Like and comment pls
      2021-03-17
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  • pUi23
    ·2021-03-17
    Hope EV can grow faster
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  • AhHuat2021
    ·2021-03-17
    pls like n comment
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    • ckLai
      Ok
      2021-03-17
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    • Yusri
      Is nikola a good Stocks to run?
      2021-03-17
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    • boonhong21
      Ok
      2021-03-17
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