Nikola Stock Surges as Retail Investors Pile In
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A gravity-defying rally in electric vehicle startup . is showing no signs of stopping, as the company’s latest efforts to conserve cash and secure funds reignites a fervor for the stock.
— that was once seen as a potential contender to industry behemoth . — have gained nearly 50% in just three sessions amid a string of positive news.
A big part of the stock’s 476% rally over the past two months has been fueled by a resurgence in mom-and-pop investors, data from shows. Nikola was heavily cited on social media platforms such as and during that period.
“Nikola has been an active name for meme speculation,” said chief market strategist at , noting that the company has a high short interest that attracts meme speculators.
The latest rally began in June, right after the stock’s plunge below the $1 level, prompting a notice of rising delisting risk from Nasdaq Inc. Shares had been on a near-vertical run since then, up 44% this year, even though it is still more than 96% below the record highs touched in mid-2020.
“Over the past two months each big move coincided with a spike in net retail purchases,” said Vanda’s .
In recent days, news about “has helped to fuel the frenzy,” said O’Rourke.
In early July, the company secured a $41.9 million grant to build six heavy-duty hydrogen refueling stations across Southern California. And on Aug. 1, the company .
“Anything Nikola can do to reduce the cash burn is helpful,” said . Back in June, Nikola said it will cut about 270 jobs in an effort to reduce spending.
The developments come at an opportune time, as Nikola is gearing up for its annual shareholder meeting on Aug. 3, when investors are expected to vote on a plan to increase the number of shares of the company, a proposal that has attracted criticism from Nikola’s ousted founder .
“Nikola likely wants to keep this momentum with news going into results and the vote,” Osborne added. The company is expected to report second-quarter results a day after the shareholder meeting.
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