Nikola motors begin trading as a public company after a quite IPO
A boost for hydrogen trucks, and fortune of founder Trevor Milton
Since its launch in 2014, Nikola has relentlessly kept up with the market. It’s recent $12 billion Nasdaq debut is one that eventually turns the company’s founder, Trevor Milton into a multibillionaire. The stock is now trading publicly after a quiet initial public offering (IPO).
The Phoenix-based company was founded in 2014. Nikola is known for its design and manufacturing of electric vehicles, drivetrains, and components, with Nikola One and Nikola Two electric semi-trucks as some of its products. Rather than use fossil fuel to power its vehicles, the automobile maker plans to use to convert water into hydrogen that can be used as trucking fuel in place of diesel.
Shares of Nikola (NKLA) ended $33.75, down less than 1% after it had previously risen as high as 5%, placing its market cap at $12 billion based on about 360 million shares outstanding. As the biggest shareholder of the company, Milton was worth about $3.7 billion at the close of Thursday. According to Forbes’ calculation, Milton was worth 3 times more.
Before getting publicly listed, Nikola’s founder Trevor Milton had already secured major investments from companies such as CNH Industrial NV. The partnership with CNH/Iveco is to build battery-electric versions for Nikola trucks that will ready to hit the market by 2021. The company is also working with Bosch, Meritor, and other specialized manufacturers in the commercial vehicle space. In 2018, Nikola received an order of 800 trucks worth $10 billion by the U.S unit of brewer Anheuser-Busch InBev SA.
“It’s interesting, the groups that have been more open to working with us are ones you’d probably not expect,” Milton said.
The company may have not generated much revenue yet but sales estimates show that there could be a jump from $150 million in 2021 to $3.2 billion in by 2024. The company plans to sell or lease 7,000 battery-powered units and 5,000 hydrogen fuel cell trucks by 2024, according to the company’s filing. There’s also been a steady uptick in interest for hydrogen-heavy duty trucks.
Interest in the company has significantly grown and is still growing, in recent months. Contributing to this growth is the company’s decision to add to its board Steve Girsky, a former vice chairman of General Motors. It’s merger with Girsky’s publicly traded VectoIQ led to the speedy Nasdaq listing of Nikola rather than through an initial public offering, or IPO.
“We’re now talking with almost every major OEM in the world,” Milton told Forbes.
Nikola’s recent boost has stepped up the competition for its major competitor- Tesla. In a recent interview, Milton said: “There’s a very few people that can out-Elon in this world and I’m one of them.” He also stated a fact that Nikola is the “pioneer” of the heavy-duty trucking industry and not Tesla.
How to invest in Nikola Motors
Nikola motors corporation is now a publicly traded company and you can trade it by investing in it on any investment platform that allows you to trade United States stocks. The stock symbol for Nikola motor is NKLA.
Is Nikola a Publicly traded company?
Nikola is a new electric company that is ready to compete with Tesla, they manufacture electric trailers, trucks, and hydrogen feeling network. The company is a publicly traded company, Nikola trades under stock symbol NKLA.
Nikola or Tesla?
Many people have compared both companies, however, they are not manufacturing the same product. Nikola electric company is focused on manufacturing hauling trucks while Tesla is doing more of personal vehicle manufacturing, person use trucks, and sometimes some hauling trucks.
Nikola's market cap is $12 billion at $35.97 per share, while Tesla's market cap is $164.3 billion at $885.66 per share.
If you are thinking about investing in Nikola, we suggest that you do your due diligence and be sure that you know what they do before you dive in. To learn more about Nikola company, click here Nikola Motors.
We have written man articles about Tesla, to read about them click here.
These are products and services that Nikola provides
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