The Nikola Corporation was founded as a startup, and it’s now one of the leading auto manufacturers that specializes in hydrogen-powered and battery-operated trucks. The company’s market value is now more than $6 billion and if you want a slice of that pie, you’ll need to learn how to buy Nikola stock.
In this guide, we’ll give you an in-depth overview of the company so you can make a well-informed decision on buying Nikola stock. Furthermore, you’ll find out if buying NKLA stock is a good idea right now and how you can get started.
About the Company
Nikola Corporation (NKLA) was founded by Trevor Milton in 2014 and is now situated in Phoenix, USA. The Nikola company is named after Nikola Tesla but isn’t actually related to the famous inventor. It’s been focusing on designing zero-emission vehicles and has presented a number of concepts since 2016, especially for the transportation industry.
In addition, the company offers pure electric and hydroelectric trucks or power trains across all applications. Nikola Motors is dedicated to the advancement of sustainable vehicles.
Its shares increased within days of completing a reverse merger with VectolQ Acquisition Corp in March 2020. After the merger, its stock rose from $10 to at least $34 in June 2020.
The Nikola stock more than quadrupled on June 9, 2020. On June 14, Nikola announced a deal with Tumim Stone Capital who is set to buy $300 million of Nikola’s common shares. In late June to early July 2021, Nikola’s stock price varied between $17.30 and $18.50.
Recently, the Nikola corporation released its executive strategy and vision. The company released a statement that they were releasing at least five prototypes of the TRE battery electric truck. The trucks were to be 100% battery operated. And NKLA stock is likely to increase due to the high demand for affordable and sustainable vehicle solutions.
You can see other truck prototypes, such as the Nikola Two truck, on the company’s website.
Should You Buy Nikola Stock?
Although the NKLA stock price rose high only to plummet back down, the electric vehicle company has bright prospects. So the question is should you buy Nikola stock right now? In this section, we’ll take a look at NKLA stock performance which will allow you to make a well-informed decision on whether you should make an investment or not.
Nikola Stock Today
Nikola stock is still trying to recover after dropping 17% at the end of March 2021. For tactical reasons, J.P. Morgan’s Paul Coster cut his price target from $33 to $30. Then, on March 18th, Nikola stock decreased more than 9% in turnover. This was caused by the news that Hanwha (who supplies solar panels for Nikola’s hydrogen fueling infrastructure) intended to sell $11.1 million in Nikola shares.
In the 2021 Q1 report, Nikola made no revenue, but it’s taking the necessary measures to become a better competitor in the battery electric vehicle industry. The measures seem to be working as Nikola stocks have rebounded strongly in June 2021, rising to almost 30% over the past month.
Nikola’s Plans Moving Forward
Nikola plans to start delivering battery electric trucks at the end of 2021. It‘s in the process of validating at least 14 prototype trucks. Last month Nikola signed a deal with Total Transport Services to order 100 trucks which may have a positive effect on its stock value.
Although the company is making progress with its business deals, Nikola stock price is still 80% off the high price it reached in June 2020.
Nikola Stock Forecast
Nikola’s stock forecast is largely positive. At least 10 polled investment analysts have recommended holding stock in Nikola Corp. The rating has held steady since May 2021.
Will Nikola Stock Go Up?
According to Capital, Nikola stock will close the year at $36 and soar to $83 by 2024.
At a glance, here’s what makes Nikola stocks a good buy:
- The interest in electric vehicles is on the rise.
- Nikola could potentially benefit from the Biden Administration’s plan to make all federal vehicles sustainable by making them electric.
- Nikola stock may appeal to bargain hunters looking for a discount entry into the electric automotive industry.
Unfortunately, Nikola stock isn’t a blue chip stock because the market has been highly volatile since it became public. But, by looking at the forecasts and the potential market for Nikola, you can determine whether it’s a miss or hit.
If you were to buy Nikola stock, how would that affect your portfolio? Research from Investors shows that Nikola stock is nowhere near a proper buying point.
The Nikola corporation stock hasn’t created a bullish stock pattern such as a double bottom, flatbase, or cup with a handle. Therefore, the Nikola ticker has a long way to go before getting to the right side of the base and having a 52-week breakout.
An excellent breakout gives you the opportunity to optimize your portfolio gains in a short space of time. If you take a look at the daily chart on NKLA stocks you’ll notice that the stock is moving closer to its 200-day moving average. This is when it will be an ideal time to buy. Be sure to use a stock screener to choose trading instruments for your portfolio.
How to Buy Nikola Stock
Still want to know how to buy Nikola stock? There are two ways to get started. In this section, we’ll discuss the different ways you can invest in Nikola corporation stocks so you can choose a method that’s ideal for your financial return. While there’s no direct stock purchase plan, you can choose from the two options below.
Online Brokers / Trading Platforms
Some people prefer to buy stock through online brokers or various trading platforms. That’s not surprising as it’s the simplest and the most common method for purchasing stocks. Anyone can connect to an online broker to buy Nikola corporation stock.
Follow these steps to buy stock through a broker or trading platform:
- Pick a reputable brokerage that is licensed. Make sure the online broker offers mobile apps and desktop access to its services so you can monitor stock performance no matter where you are.
- Decide how much Nikola shares you want to buy.
- Select your order type.
- Now it’s time to execute your trade and buy NKLA stock. Before buying, understand the risks involved and make sure you’re not spending more than you can afford.
If you want comprehensive financial advice when buying NKLA shares, you should pick a professional financial advisor to assist you. This option is suitable for people who are new to buying stocks.
Financial advisors have credentials to prove that they have expertise in managing finances. Choose a reputable financial advisor to help you buy Nikola stock.
While this option is more expensive than going through a stockbroker, it does have a few benefits:
- Giving you the best solution when the market falls.
- Being able to effectively buy stocks when the market skyrockets.
- Staying on track when you want to make emotional stock purchases/sales.
- A financial advisor can assist with adjusting your financial plan to suit your current situation.
If you’re interested in a financial advisor to buy NKLA shares, simply follow the same process as choosing a broker. Pick your financial advisor, decide how much stock you want, pick your order type, and then make a purchase.
We hope that this guide helped you with how to buy Nikola Motor Company stock. You can either pick a broker or financial advisor to assist you.
By analyzing the NKLA market cap, you can decide whether buying Nikola stock right now is the best option. If the company succeeds in manufacturing and distributing its sustainable vehicles, investing in Nikola may have a rewarding return.
You could also take a look at Nikola stock predictions to see whether it’s an ideal buy right now.
Even though the Nikola Corporation was founded in 2014, it only became a public company on June 4, 2020.
Individual insiders are the most numerous investors in Nikola with 27.6% total ownership. The general public is the next on the list, with individual investors making up 24% of shareholders. Institutions and private companies follow them closely with 21% and 20.9% of ownership respectively.
Trevor Milton is the largest shareholder in Nikola. He has 21% of shares outstanding. Norges Bank Investment Management is the single corporate entity that owns the most Nikola shares.
You can follow the guide above to learn how to buy Nikola stock and make a profit.