Nikola is a car company that makes special cars that use electricity and hydrogen to run. Some people think these cars are very cool, but other people have doubts about them because there aren't many places to charge them and the hydrogen they need is expensive and hard to get. The boss of Nikola is having a big fight with someone who used to work for him and said bad things about the company. Because of these problems, some people are selling their shares in Nikola, which makes the price go down. Read from source...
- The article is poorly structured and lacks coherence. It jumps from one topic to another without providing a clear context or transition. For example, the first paragraph introduces the boardroom battle, but then it shifts to the Wolfe Research report, which seems unrelated at first glance.
- The article uses vague terms and ambiguous statements that do not convey any meaningful information. For instance, "substantial hurdles" and "steep hydrogen expenses" are subjective and relative expressions that could mean different things to different readers or stakeholders. Moreover, they do not specify the magnitude, nature, or source of these challenges or costs.
- The article relies heavily on secondary sources and does not provide any primary data or evidence to support its claims. It cites only one analyst's opinion, without mentioning his credentials, track record, or potential biases. Additionally, it fails to present any counterarguments or alternative perspectives that could balance the narrative or challenge the assumptions of the report.
- The article displays a negative and pessimistic tone that does not reflect the reality or complexity of the situation. It implies that Nikola has no chance of overcoming its challenges, without considering the potential benefits, opportunities, or solutions that could emerge from its innovative strategies, partnerships, or technologies.
- The article ignores or downplays the positive aspects of Nikola's business model and vision, such as its collaboration with Bosch, its pre-orders for its trucks, its hydrogen production and distribution network, or its potential contribution to the environmental goals and social impact.
Given that Nikola's shares are falling today due to multiple factors, I will provide you with some comprehensive investment recommendations based on the article you shared. These recommendations may include buying or selling options, futures, or other derivatives, as well as the potential risks involved in each strategy. Please note that these are only suggestions and not definitive advice, as you should always do your own research before making any investment decisions. Here are my recommendations:
1. Sell Nikola's shares short: This is a high-risk, high-reward strategy that involves betting on the price of Nikola's shares to decrease in the future. If you are correct and the share price falls, you can make a profit by buying back the shares at a lower price than you sold them for. However, if the share price rises instead, you will incur losses as you have to buy back the shares at a higher price than you sold them for. This strategy is suitable for investors who are willing to take on significant risk and have a long-term horizon, as short selling can be volatile and subject to sudden changes in market sentiment. Some potential risks of this strategy include:
- The share price may not fall as expected, resulting in losses or limited gains.
- You may face regulatory or legal consequences if you are found to have engaged in illegal or unethical short selling practices, such as naked short selling, manipulation, or fraud.
- You may be subject to margin calls or liquidation if the share price moves against your position and you do not have enough funds to cover your losses.