Business Insider says that Nikola (NASDAQ:NKLA) is letting people go while it restructures Romeo Power to save money. According to a Friday claim from the site, 15% of Romeo Power’s entire staff has been let go by the electric-truck maker. According to the report, that percentage equals 45 workers. Friday’s premarket trading saw relatively little movement in Nikola stock (NASDAQ:NKLA).
In August, Nikola made a move to buy the battery company through an all-stock deal. They did this because they saw the benefits of vertical integration and domestic battery pack production. The takeover should strengthen Nikola’s supply network, the management of Nikola said. On October 13, the transaction was completed.
Nikola (NASDAQ:NKLA) is like Lordstown in that it can’t show growth even when good news comes out. After Romeo Power, a battery manufacturer, was acquired, the ailing company’s shares increased (NYSE:RMO). But they quickly lost steam after Nikola’s founder Trevor Milton was found guilty of securities and wire fraud by a jury. When a company’s former CEO deceives investors to boost share prices artificially, it’s difficult to have faith in that company.
Nikola Stock Forecast
Even though NKLA stock has been trying to recover since Milton’s conviction, it’s important to look at the situation as a whole. The stock price reached its highest point in June 2020, which was more than three months before Hindenburg Research released its devastating short report accusing the company of breaking the law. Despite Milton’s legal issues, Nikola’s issues predated them. The stock price reached its highest point in June 2020, which was more than three months before Hindenburg Research released its devastating short report accusing the company of breaking the law.
Nikola Motor’s stock has since struggled and lost more than 71% of its value as EV stocks have soared this year. Even though electric vehicle owners were eligible for federal incentives under the Inflation Reduction Act, Nikola’s stock price didn’t improve. More electric truck makers expect growth drivers in 2023, which will make the competition tougher than ever. There is no sign that Nikola is ready, and it faces a difficult road ahead.
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