Why Tesla Should Fear Nikola Corp.

Nikola Corp. is one of the hottest stocks on the market. Could it compete with electric car giant Tesla?

Image credit: Raquel Baranow / CC BY-SA

Nikola Corp. (NASDAQ: NKLA) is an American hybrid truck design and manufacturing company based in Pheonix, Arizona, where it also has its research and development operations.

The company was founded in Salt Lake City, Utah in 2014 and like Tesla, was also named after inventor Nikola Tesla.

finviz dynamic chart for  NKLA

Nikola Corp. manufacturers battery-electric and hydrogen-electric semitrucks (18-wheelers) – the Nikola One, Two, and Tre.

Nikola also creates and sells electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure.

What makes NKLA different from TSLA is the company’s hydrogen-electric fuel cell technology, which help its vehicles generate more power and range than lithium battery engines.

14,000 Nikola Two semitrucks with hydrogen-electric engines have already been reserved, which the company believes could result in $10 billion in revenue once fulfilled.

And on Monday, NKLA announced that the Nikola Badger, an electric pickup truck, became available for preorder with a $5,000 deposit (the stock popped 11% on the news).

The Nikola Badger pickup truck will come in an all-electric model with a 300-mile range and start at $60,000. But even more impressive is the company’s hydrogen fuel cell model that’s expected to go twice as far for $80,000.

From $10 per share on January 2, to $67.50 today – this has simply been one of the best performing stocks on the market in 2020.

And with its electric hydrogen fuel cell technology, Nikola could give Tesla a serious run for its money over the next decade.