Yahoo Finance Live’s Julie Hyman and Brian Sozzi discuss the Nikola stock surge as the company is set to start production on its first electric truck.
Video Transcript
[BELL]
JULIE HYMAN: And there, you have the opening bell on this Thursday morning. And we had some indications for a higher open here this morning. We have been monitoring headlines coming out of Europe. And that’s as President Biden is meeting with European officials, with NATO officials, with EU officials, with G& officials, sort of a trio of mini summits there to discuss Russia’s invasion of Ukraine and how the West can support Ukraine. And all three major averages opening up higher here, the NASDAQ by a half a percent, S&P 500 almost by that amount, and the Dow by about a 1/3 of 1%.
Just seeing some headlines out of those meetings that the US is planning to pledge, according to “The New York Times,” to accept 100,000 refugees from Ukraine and will also donate a billion dollars to European countries that are absorbing the enormous tide of migrants from that war that have been flooding into various European countries. So, again, we are going to continue to monitor those headlines and the effect that we’re seeing, to some extent, on the markets, particularly the commodity markets, although that’s a bit muted here this morning.
Let’s get on to some other movers here, Brian Sozzi. Nikola is on the list this morning. The stock is going up. Look at that. It’s up 18 and 1/2%. I say the stock is going up like that because Nikola usually, when we talk about it, it’s heading in the opposite direction. But the company says it began full commercial production of battery electric trucks. It’s got a factory in Arizona. So that’s where this is occurring. And so that’s why the shares are going up here. For a lot of these sort of pre-revenue or certainly pre-profit companies in the electric vehicle space, when they actually start churning stuff out, it’s a good sign.
BRIAN SOZZI: It has been a long and winding road, Julie, for, I think, for Nikola to get to this point. I’m looking at their investor presentation that they just published. It is very, very long. Full and fair disclosure is still going through it. But one thing that did catch my attention, they said they expect to deliver 300 to 500 of their battery-powered electric semi trucks in the second half of this year. That is primarily dependent if they can get the critical components they need. So I think I understand the markets– yeah, I understand markets were responding to this. But still, all in all, a lot of things to be determined.
Source: https://finance.yahoo.com/video/nikola-stock-pops-ev-maker-141354046.html
