The One Profit Play I See in the Nikola Scandal
September 17, 2020 at 05:00 AM EDT
Would-be electric truck maker Nikola Corp. is one of the biggest stocks of the mobile-investing craze of the past six months. Its stated goal is to "transform and disrupt the transportation industry globally." Last time I checked, the global transportation sector was worth in the neighborhood of $6.5 trillion, so there's no denying Nikola is aiming high. As I've said many times here, the electric vehicle industry is the future. Tesla has blazed the trail and proven it. (Get it? Nikola? Tesla?) It's just that Nikola hasn't really built anything yet. With a $30 billion market cap, it's the world's biggest truck maker that hasn't built or sold a single truck. Nikola's ideas and concepts are awesome, but there's no getting around the fact that they're just ideas and concepts. That hasn't stopped retail investors from snapping it up. NKLA shares have been on a wild ride since the pandemic started. At one point in early June, the stock scraped the $80 level, and it still sells for more than three times what it did at its IPO. But now the company is under attack by a very aggressive short-seller. These attacks have already slammed the shares by as much as 36%; there's no telling how much the short-seller may have made in the process. It's more important than ever for regular investors to know just what's going on here, because there is a profit play to be made... Full Story The post The One Profit Play I See in the Nikola Scandal appeared first on Money Morning - We Make Investing Profitable . It's more important than ever for regular investors to know just what's going on here, because there is a profit play to be made... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.