Tesla competitor Nikola is doomed to fall 40% in a month, a famed short-seller says
Nikolahas been on a tear since it went public last week — the electric-truck maker's stock doubled in one day as investors, hungry for another Tesla-like stock to invest in, piled into it.
- At one point, Nikola, which has yet to sell a single car or generate revenue, saw its market valuation surpass car giants such as Ford and Fiat Chrysler that sell millions of cars every year.
- The short-seller
Andrew Leftof Citron Researchsaid this week that the party's over and that he expects Nikola to fall by 40%, to $40, over the next month.
- "The anti-Tesla If you buy here you deserve to lose your $$ considering Milton sold just a week ago at $10," Left tweeted on Tuesday.
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But don't expect that run to last long, the famed short-seller Andrew Left of Citron Research said this week.With the electric-truck maker's market valuation briefly surpassing car giants such as Ford and Fiat Chrysler — though it hasn't sold a single car — Left said investors deserved to lose money if they bought its stock at current levels.
Nikola shares traded at $65 as of Wednesday's close, so a drop to $40 would represent a decline of 40%.Read more: Famed short-seller Andrew Left lays out his methodology for finding the stock market's weakest links — and says he's terrified of newbie day-traders that think they can outsmart Carl Icahn and Warren Buffett
Left pointed to the progress
Nikola, which plans to sell an electric semitruck dubbed the Badger, has said it has potential revenue of $10 billion from preorders from customers like Anheuser-Busch. The Badger is designed to directly compete with Ford's F-150.Left also pointed to Nikola CEO Trevor Milton's sale of shares at $10, suggesting that Milton might think the stock is overvalued.
Nikola shares traded down 15%, at $55.10, early Thursday.
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