"Wedbush Securities drops its price target on Neutral-rated Nikola (NASDAQ:NKLA) to $13 from $25 on concerns over near-term obstacles for the EV startup. The long-term view on Nikola from Wedbush is still fairly positive..
Analyst Dan Ives: "Overall we still believe the company's EV and hydrogen fuel cell ambitions are attainable in the semi-truck market. Importantly, we also believe in a Biden Administration driven green tidal wave domestically will be massive around EV/hydrogen endeavors over the coming years and could significantly benefit and accelerate Nikola and its Arizona factory footprint build out ambitions. With Nikola a pre- revenue company at this point, it’s all about the management team laying out the execution, timetable, and build out strategy for its EV/Hydrogen fuel cell roadmap. With the prototype trucks in Germany completed and the Arizona flagship factory build-out right on schedule, we believe more strategic hydrogen partnerships could be on the near-term horizon both in the US and across Europe which is good news. Overall we still believe the company's EV and hydrogen fuel cell ambitions are hittable in the semi- truck market, although we still have clear concerns that the execution and timing of these ambitious goals stay on track over the coming years."
Nikola is said to be a story stock and a prove me name for now with much of the Street hype around the Nikola story already taken down after the slimmed down GM partnership, the company sunsetting the Badger product line and toned down general expectations from the investment community on Nikola for the next 12 to 18 months."