## Should You Invest in Nikola Stocks?
Nikola Corporation (NKLA) is an American electric vehicle manufacturer that designs and manufactures zero-emission trucks, electric utility vehicles, and related infrastructure. The company was founded in 2014 and is headquartered in Phoenix, Arizona. Nikola’s mission is to «accelerate the world’s transition to sustainable transportation.»
**Nikola’s Business Model**
Nikola’s business model is based on the sale of electric vehicles and hydrogen-powered fuel cells. The company’s trucks are powered by either batteries or hydrogen fuel cells. Nikola also sells hydrogen refueling stations and electric charging infrastructure.
Nikola’s target market is commercial fleets. The company believes that its electric vehicles can help businesses reduce their operating costs and improve their environmental performance.
**Nikola’s Financial Performance**
Nikola has not yet generated any significant revenue. The company’s financial performance has been mixed. In 2020, Nikola reported a net loss of $340 million on revenue of $1.3 million. In 2021, the company reported a net loss of $548 million on revenue of $15.7 million.
Nikola’s financial performance is expected to improve in the coming years as the company begins to deliver vehicles to customers. The company has a backlog of orders for over 14,000 trucks.
**Nikola’s Risks**
Nikola faces a number of risks, including:
* **Competition:** Nikola faces competition from a number of established automakers, including Tesla, Ford, and General Motors.
* **Technology:** Nikola’s vehicles are based on new technology. There is a risk that the technology could prove to be unreliable or expensive to manufacture.
* **Funding:** Nikola has a history of raising capital. The company may need to raise additional capital in the future, which could dilute the value of existing shares.
### Pros of Investing in Nikola Stocks
* **First-mover advantage:** Nikola is one of the first companies to develop electric trucks. The company has a first-mover advantage in this market, which could give it a competitive advantage.
* **Strong order backlog:** Nikola has a backlog of orders for over 14,000 trucks. This indicates that there is strong demand for the company’s vehicles.
* **Government support:** Nikola has received government support for its electric vehicles. The company has received grants from the California Air Resources Board and the U.S. Department of Energy.
### Cons of Investing in Nikola Stocks
* **Competition:** Nikola faces competition from a number of established automakers. The company will need to execute well in order to compete with these rivals.
* **Technology:** Nikola’s vehicles are based on new technology. There is a risk that the technology could prove to be unreliable or expensive to manufacture.
* **Funding:** Nikola has a history of raising capital. The company may need to raise additional capital in the future, which could dilute the value of existing shares.
## Conclusion
Nikola is a high-risk, high-reward investment. The company has a first-mover advantage in the electric truck market, but it faces a number of challenges, including competition and technology risk. Investors should carefully consider the risks and rewards before investing in Nikola stocks.
## Additional Resources
* [Nikola Corporation website](https://nikolamotor.com/)
* [Nikola Corporation investor relations website](https://nikolamotor.com/investors/)
* [Nikola Corporation stock price](https://finance.yahoo.com/quote/NKLA/)