What's Going On With Nikola's Stock?
Portfolio Pulse from Erica Kollmann
Nikola Corporation's (NASDAQ:NKLA) stock is trading higher due to a rally in heavily-shorted stocks by retail investors and speculation about increased tariffs on Chinese electric vehicle imports by the Biden administration. The stock's rise is also attributed to a high short interest of 36.87% and an RSI indicating oversold conditions. Year to date, NKLA shares have lost 15.45%, outperforming its historical average annual return of -64.33%.
May 14, 2024 | 3:00 pm
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POSITIVE IMPACT
Nikola Corporation's stock is experiencing a surge due to a retail investor-driven rally and potential tariff increases on Chinese EV imports. The high short interest and oversold RSI conditions suggest a short-term bullish outlook.
The stock's rise is directly linked to the retail investor rally and the anticipation of tariff increases on Chinese EV imports, which could reduce competition for Nikola. The high short interest indicates a potential for a short squeeze, further driving up the price. The oversold RSI suggests the stock was previously undervalued, making the current rally a correction towards its intrinsic value. However, the stock's historical performance and the speculative nature of the news warrant caution.
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IMPORTANCE 90
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