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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.
(Score: 4, Insightful) by c0lo on Friday June 12 2020, @12:23AM (2 children)
A stock market awash with money and more irrational than ever: valuation of a company with no income higher than operational businesses which weathered many economical crises over their century-old history.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 0) by Anonymous Coward on Friday June 12 2020, @05:05AM (1 child)
It just shows the stock market is a rich man's game.
When the 1% do well, the stock market jizzes itself into the stratosphere. Then turns around on a dime when it's a rainy day.
Either way, both markets are the dreaded "consensus opinion" so hated when applied to scientists but revered when applied to markets.
(Score: 2) by ChrisMaple on Friday June 12 2020, @05:15PM
Stock market prices also respond to government money giveaways, as a large portion of the money ends up in the hands of speculators.