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posted by martyb on Thursday June 11 2020, @07:57PM   Printer-friendly
from the a-fuel-and-his-money-are-soon-parted? dept.

Nikola semi startup shines on Wall Street with $34BN valuation:

While Tesla's long been the poster child for stratospheric market value despite modest profits, electric truckmaker Nikola knocked on Wall Street's door this week with a huge number.

As Automotive News points out, Nikola's market value reached $34 billion this week after its debut on the New York Stock Exchange last week. The incredible value, which is higher than Ford and Fiat Chrysler Automobiles, comes with a big caveat. The startup hasn't yet posted a single dollar in revenue.

In fact, Nikola's grand plans are even lengthier than we're used to from Tesla. The massive plant Nikola plans to build in Arizona won't be fully utilized until near the end of this decade, the company has previously said. The company did announce a notable new hire on Wednesday in Mark Duchesne. The executive will become Nikola's global head of manufacturing after he spent five years at Tesla and 22 years at Toyota.

[...] With all these grand plans moving ahead, Nikola forecasts revenue in 2023 as its semis begin trickling into the world. Today, the company says it has 14,000 reservations for its fuel-cell semi trucks, which it needs to still transform into actual preorders.

Tesla has its own semi truck, the Semi, which is reportedly ready for "volume production" and scheduled for launch next year.


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  • (Score: 0) by Anonymous Coward on Thursday June 11 2020, @09:09PM (1 child)

    by Anonymous Coward on Thursday June 11 2020, @09:09PM (#1006597)

    Time to break up Nikola. Monopolies are wrong!

  • (Score: 2) by takyon on Thursday June 11 2020, @09:31PM

    by takyon (881) <reversethis-{gro ... s} {ta} {noykat}> on Thursday June 11 2020, @09:31PM (#1006603) Journal

    Tesla shines with $190 billion evaluation, bigger than Toyota s00n.

    https://arstechnica.com/cars/2020/06/tesla-stock-soars-above-1000-as-musk-vows-to-go-all-out-for-semi/ [arstechnica.com]

    Tesla's stock price soared above $1,000 on Wednesday. The rise pushed the company's valuation to around $190 billion—within striking distance of the world's most valuable car company, Toyota, at $215 billion.

    [...] Nikola's debut on the stock market apparently got Elon Musk's attention. In a Wednesday email to staff, Musk reportedly wrote that it was "time to go all out" and bring the long-delayed Tesla Semi to market. The Semi was initially planned for production in 2019, but Tesla recently admitted that the ship date would slip to 2021. Two years ago, Nikola sued Tesla, arguing that Tesla's design for the semi was too similar to Nikola's own semitruck design. That legal battle continues to this day.

    Nikola has a $34 billion valuation?

    Elon Musk owns more than 34 million shares of Tesla, so his Tesla holdings alone are now worth more than $34 billion. Musk's compensation package grants him large tranches of stock options after Tesla's stock rises above certain benchmarks. Musk recently collected his first award, worth around $800 million. For Musk to collect this award, Tesla's stock needed to stay above $100 billion for several months, and Tesla also needed to hit a revenue or profit target.

    --
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