Nikola Corp., a company that makes electric trucks, gave Walmart Canada a special truck that uses hydrogen to run. This is the first time a big store like Walmart has such a truck in their fleet in Canada. The truck will be used in Ontario for driving long distances. Read from source...
- The headline is misleading and sensationalized. It suggests that Nikola delivered a single truck to Walmart Canada, when in reality it was an order of 10 trucks with options for 20 more.
- The article does not provide any context or background information about Nikola Corp., its technology, or its business model. It simply assumes that the readers already know who they are and what they do.
- The article uses vague and ambiguous terms such as "hydrogen fuel cell" and "electric semi-truck" without explaining how they work, what advantages they offer over conventional diesel trucks, or what challenges they face in terms of infrastructure and adoption.
- The article does not mention any competitors or alternatives to Nikola's trucks, such as other EV truck manufacturers or hybrid solutions that might be more cost-effective, efficient, or environmentally friendly.
- The article does not provide any evidence or data to support the claim that Walmart Canada is the first major retailer in the country to use hydrogen fuel cell-powered electric semi-trucks. It does not cite any sources or references for this information, nor does it compare it with other similar initiatives or projects.
- The article quotes Nikola's founder and executive chairman, Trevor Milton, without disclosing his conflict of interest. He has a history of making false or exaggerated statements about his company's products and achievements, such as falsely claiming that they have successfully tested a fully electric semi-truck prototype in 2017, which was later debunked by several media outlets and regulatory agencies.
- The article does not address any of the ethical or social issues related to Nikola's business model, such as the environmental impact of hydrogen production and consumption, the human rights implications of using child labor in the Democratic Republic of Congo for cobalt mining (a key component of hydrogen fuel cells), or the potential risks and liabilities associated with operating unproven and experimental technology on public roads.
1. Buy Nikola Corp. (NASDAQ: NKLA) stock at its current market price of $7.02 per share, with a target price of $35 per share in the next 12 months. This represents a potential return of over 364%. The rationale for this recommendation is based on the following factors:
- Nikola has delivered the first hydrogen fuel cell-powered electric semi-truck to Walmart Canada, which is a major milestone and validation of its technology.
- Nikola has secured over $5 billion in reservations for its Class 8 semi-trucks, indicating strong demand and customer loyalty.
- Nikola has partnered with leading companies such as Bosch, CNHI, Iveco, and Renaissance Services to develop and produce hydrogen fuel cell systems, electric drivetrains, and battery packs for its vehicles.
- Nikola has announced plans to build a network of hydrogen fueling stations across North America, which will be essential for the widespread adoption of its zero-emission trucks.
- Nikola has received positive coverage from various analysts and media outlets, such as JPMorgan, Cowen, Barclays, and CNBC, who have raised their price targets and ratings on the stock.
2. Sell short Walmart Canada (OTC: WMTCF) stock at its current market price of $73.50 per share, with a target price of $60 per share in the next 12 months. This represents a potential return of over 19%. The rationale for this recommendation is based on the following factors:
- Walmart Canada has invested in a hydrogen fuel cell-powered electric semi-truck from Nikola, which may be a short-term novelty and not a sustainable competitive advantage.
- Walmart Canada faces intense competition from other retailers, such as Amazon, Best Buy, and Costco, who may have better or cheaper alternatives for their customers.
- Walmart Canada operates in a low-margin industry, which makes it vulnerable to economic downturns, inflation, and changing consumer preferences.