Benzinga - by Henry Khederian, Benzinga Editor.
Nikola Corp (NASDAQ:NKLA) shares traded 6% lower to 60 cents on Thursday, despite a lack of company-specific news for the session. Shares may have fallen amid peer EV company Fisker Inc (NYSE:FSR) dropping some 54% for the session following a Wall Street Journal report suggesting the company is preparing for a possible bankruptcy filing.
The EV industry is highly competitive, and the success or failure of one company can reflect on others in the same space. If Fisker, a peer company, is facing financial troubles or potential bankruptcy, investors might start to question the financial health and viability of other EV companies, including Nikola.
Additionally, any indication of financial instability within the EV sector can erode investor confidence. If investors perceive that EV companies are struggling to stay afloat or facing significant hurdles, they may sell their shares in anticipation of further declines, leading to a drop in stock prices across the sector.
How To Buy NKLA Stock
For example, in Nikola’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, NKLA has a 52-week high of $3.71 and a 52-week low of $0.52.
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