Wedbush drops Nikola (NASDAQ:NKLA) to an Underperform rating in a new note posted after the market close.
“While we have watched this name from the sidelines given our caution on the execution front, we now believe the downside risks outweigh any positives for the stock,” writes analyst Dan Ives.
“Overall we still believe the company’s EV and hydrogen fuel cell ambitions are attainable in the semi-truck market, although we have serious concerns that the execution and timing of these ambitious goals stay on track over the coming years,” he adds.
Beyond the Trevor Milton drama, Ives also thinks some of the eye-popping battery innovations coming out of Tesla throws a wrench in the ROI story around hydrogen fuel cell vehicles over the long term.
Shares of Nikola were down 25.82% today.
Catch up on the dizzying rush of news on Nikola over the last two weeks.