Nikola Corporation (NASDAQ:), a company that has pioneered the development of electric and hydrogen-powered trucks, saw its stock fall to a 52-week low of $1.05, a dramatic fall from its 52-week high of -$34.50. This latest price level reflects a dramatic decline for the company, which has experienced significant sales over the past year, with its market capitalization dropping to $96 million. Investors have seen a significant drop in Nikola's market value, with the stock down 94% over the past year, despite a 154% revenue growth over the past twelve months. The company's ambitious plans to transform the transportation industry have been met with a series of challenges, including increased competition and a general market shift away from riskier growth stocks. As Nikola continues to go through an important stage of business development, with an EBITDA of $499 million, the market response remains an important indicator of investor confidence in the company's long term. According to InvestingPro analysis, the stock appears undervalued, with analyst targets suggesting the possibility. Get detailed forecasting metrics and 12 additional ProTips with an InvestingPro subscription.
In other recent news, Nikola Corporation has seen a series of advances. The company reported net income of $33 million in the third quarter, up from $31 million in the previous quarter. However, TD Cowen has maintained a Hold rating on Nikola due to the expected high cash burn rate. Nikola also announced a new hydrogen refueling station in West Sacramento, CA, under its HYLA brand, scheduled to open in January 2025.
The company also amended the terms of its outstanding convertible notes, allowing note holders to convert their debt at a reduced rate, subject to Nikola raising at least $65 million from the sale of its common stock. In addition, Nikola entered into an Equity Distribution Agreement with BTIG, LLC, which made the sale of $100 million of its common stock.
Despite facing financial challenges, Nikola has achieved a record sales of 88 electric hydrogen trucks with electric cells and a 350% increase in hydrogen delivered to its stations year on year. According to TD Cowen analysts, obtaining additional financing or making strategic partnerships is important for the company's future. This is the latest development that reflects the successes and challenges of Nikola Corporation.
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