Stock Story -
What Happened:Shares of EV truck manufacturer Nikola (NASDAQ:NKLA) jumped 19% in the morning session after the company reported second quarter earnings results. Nikola blew past analysts' revenue expectations this quarter. Adjusted EBITDA loss was also better than expected. The company sold (wholesale) 72 hydrogen fuel cell electric vehicles in Q2, exceeding the high-end of previous guidance, which shows demand momentum. Zooming out, while the company still lacks scale and profits, we think this quarter featured some important positives. After the initial pop the shares cooled down to $8.09, up 3.8% from previous close.
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What is the market telling us:Nikola's shares are very volatile and over the last year have had 88 moves greater than 5%. But moves this big are very rare even for Nikola and that is indicating to us that this news had a significant impact on the market's perception of the business.
Nikola is down 67.7% since the beginning of the year, and at $8.09 per share it is trading 86.2% below its 52-week high of $58.80 from August 2023. Investors who bought $1,000 worth of Nikola's shares 5 years ago would now be looking at an investment worth $26.44.
![Why Is Nikola (NKLA) Stock Soaring Today](https://d68-invdn-com.investing.com/content/pic63d7c21e44bed5506f2e31147bf88de8.jpeg)