Within the electric vehicle space, few if any competitors not named Tesla (NASDAQ:TSLA) have generated as much discussion – and hot debate – as newcomer Nikola (NASDAQ:NKLA). With the company’s Badger pickup truck – which will offer electric and hydrogen-electric powertrains – it theoretically represents a viable challenge to Tesla’s dominance. However, “theoretically” is the operative word here. As you can tell, Nikola stock has come down a long way from its peak.
No doubt, this led to many criticizing the upstart organization. While the Nikola Badger is a looker in my opinion, its more concept than reality. In contrast, look at Tesla. Depending on what day it is and Wall Street’s mood at the time, it’s either the biggest automaker in the world or running a close second.
And that, as TSLA bulls will remind you, is justified. Tesla has several production cars, manufacturing facilities and raging demand, all attributes that support its bullish narrative. Compared to Nikola stock, the rookie challenger is a fanciful idea.
Let me be clear about NKLA – I understand the core criticisms against the underlying company. This is speculation, pure and simple. But as far as gambles go, I think this is a smart one for discerning, patient investor.
Because let’s face it – at one point, Tesla was also an idea. Plus, it wasn’t too long ago that several analysts questioned the company’s sustainability and cash burn. Yet the EV maker pushed on relentlessly and high-conviction stakeholders enjoyed their rewards.
Therefore, it’s not out of the realm of possibility that Nikola stock could do the same. From a business perspective, I would suggest that it’s probable that NKLA