Will Nikola Corp. (NKLA) Stock Survive for the Next 12 Months?

• NKLA stock declined 60.27% in a month, 96.67% in three months, and 77.99% in a year. 
• Nikola shared its doubts about being able to continue for the next 12 months. 

EV maker Nikola Corp. (NASDAQ: NKLA) is going through a rough phase; constant CEO changes and recalls led NKLA stock to suffer 60.27% in a month. In June, a fire in the battery pack that destroyed five Nikola Trucks at Company HQ led the company to recall 209 battery-electric semi-trucks. Recently, Nikola named Stephen Grisky the fourth CEO in four years. 

Nikola Corp. (NKLA Stock) – Financials Not Looking Good

On August 31, 2023, Nikol’s investors agreed to a proposal to allow the company to issue more shares. Experts suggest that the EV maker requires $600 Million to execute its business plan which might revive the company. Moreover, the company reiterated its warning for the third time since February 2023 regarding sustenance for the next 12 months.

Comparing Q1 and Q2 2023 data, sales went from $11.12 Million to $15.36 Million, while sales grew from 69.39% to 38.18%. Despite the fear of Nikola being bankrupt soon, Tower Research Capital LLC TRC raised its position by 968.0% from the previous quarter and owns 105,923 shares worth $128,000. Such confidence hints Nikola Corp. has the potential to turn things around. 

Nikola Corp. (NASDAQ: NKLA) – Technical Analysis

At press time, NKLA stock is trading at $1.1800; the previous open and close remained the same at $1.1800. The 52-week range is from $0.52 to $5.58, suggesting further decline could create new lows for 2023. With an average volume of $45.50 Million shares, the market cap is $1.01 Billion. 

The trailing twelve-month (TTM) earnings per share (EPS) is -$1.45, indicating weak financials. Analysts seem optimistic about the company’s growth and estimated a price target at $4.50 with a staggering 281.4% upside. They also provided a 2.14 rating for “hold”.

Nikola released Q2 earnings on August 4, 2023, where the reported revenue of $15.362 Million surpassed the expected value of $14.995 Million by 2.45%. At the same time, the reported earnings of -$0.20 per share also beat the estimated value of -$0.22 per share by 9.07%. Despite such positive earnings, NKLA’s stock price fell 43.92% during earnings. 

Compared to the previous quarter, revenue fell by 15.92%, while EPS gained 20.00%. The subsequent earnings will be released on November 2, 2023, where the estimate for revenue is $20.431 Million, and for the EPS is -$0.155. The (TTM) revenue is $56.84 Million, and the year-over-year (YoY) quarterly revenue growth is negative 15.30%. 

Nikola Corp. (NKLA) Stock – Candle Exploration

The stock price is slightly above the $1.00 mark and is declining. Previous iterations suggest that it bounces back from $1.00; investors are also hoping for the same this time. If the price fails to bounce, it might stoop to new lows for 2023. Moreover, the financials, truck recalls, and frequent change of CEO could be a better sign for the investors. 

If the price bounces back and crosses immediate resistance at $2.03, it will have to sustain for an extended period to be strong enough to cross R1 at $3.71 and R2 at $5.58. Descending 200EMA and 50EMA hints at a price drop and RSI at 35.43 supports the drop. 

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