NKLA) stock published on July 17, I advised investors to wait for the start-up’s shares to fall to $30 before buying them. That turned out to be good advice, as Nikola stock did fall slightly below $30 on July 24 before surging to $46 on Aug. 13.” data-reactid=”12″>In my last column on Nikola (NASDAQ:NKLA) stock published on July 17, I advised investors to wait for the start-up’s shares to fall to $30 before buying them. That turned out to be good advice, as Nikola stock did fall slightly below $30 on July 24 before surging to $46 on Aug. 13.
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Further, the company has multiple, upcoming, positive catalysts that look poised to meaningfully boost Nikola stock over the medium term to longer term.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”31″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Nikola’s New Deal
announced that it received an order for 2,500 battery-electric garbage trucks from Republic Services. Under the deal, Republic has the option to buy another 2,500 battery-electric trucks from the company.
placed such a huge order (which Nikola Chairman Trevor Milton has said is binding) unless it has a great deal of confidence in Nikola and its technology.
Moreover, I think there’s a very good chance that Nikola will obtain many more such orders in the mid- to long-term.
As I’ve written previously, battery-electric trucks can’t transport heavy loads for long distances because they require very large batteries to travel for a long time. And the trucks’ need to recharge for hours after traveling for several hundred miles also prevents them from being used for even medium-distance jobs. But, rendering these disadvantages moot, garbage trucks mostly only travel within a few towns during each of their outings.
Additional Catalysts for Nikola Stock
listed many upcoming long-term positive catalysts that should lift Nikola stock.
Among those are the unveiling of the prototype of the Nikola TRE truck which, according to Brady, is expected to occur by the end of this month. Ultimately, Nikola is looking to launch both battery-electric and fuel-cell versions of the TRE. The trucks are expected to be hit the market by the end of 2021, Brady reported.
BUD) is expected to receive the company’s Nikola Two hydrogen fuel cell truck and Nikola’s plant in Arizona is slated to be up and running.” data-reactid=”43″>Also by the end of 2021, Anheuser-Busch InBev (NYSE:BUD) is expected to receive the company’s Nikola Two hydrogen fuel cell truck and Nikola’s plant in Arizona is slated to be up and running.
The Bottom Line on Nikola
Nikola’s deal with Republic Services validates the company and its technology. As a result, I expect Nikola to announce many new orders for its garbage trucks within the next year.
Meanwhile, Nikola has multiple, positive catalysts that should lift its shares over the next 12 to 18 months. In addition to the likely milestones cited by Brady, the company will probably announce multiple new partnerships with truck manufacturers within that time frame.
In the bigger picture, I continue to believe that many companies will, like Anheuser-Busch and Republic Services, buy fuel-cell and/or battery-electric trucks to show consumers that they care about the environment in general and reducing their carbon emissions in particular. Over the longer term, Nikola looks well-positioned to exploit that trend.
Given all of these points, I recommend that longer-term investors buy Nikola stock.
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