The surge in EV makers’ stock prices is reminiscent of the dot-com boom in the 1990s. Both names can be winners, but based on the charts, one is more likely to win than the other. Tesla competitor Nikola Corp. has seen its shares surge since debuting as a public company last week. Unlike Tesla's bullish ascending triangle, Nikola's symmetrical triangle has no directional bias. Yes - especially if you believe in this one important Tesla metric: Tesla’s time horizon.

The company has been building new factories in a frenzy, which points to strong demand. CNHI

- that makes the IVECO-brand of trucks and German automotive supplier Robert Bosch. which specialises in hydrogen-powered truck design and manufacture, is shown on the screen of a smartphone in front of a blue backdrop of the global stock markets and worldwide indices in Frankfurt, Germany, on 12th June, 2020. At some point, Tesla's quality will catch up with them in their little cars and they will have a hard time dealing with customers that have performance demands, instead of customers who are making a fashion statement. Nikola is also in a consolidation phase, but unlike Tesla, the stock's chart is neither bullish nor bearish. Currently, investors are willing to pay a very high premium for EV makers. Tesla, on the other hand, appears to be untethered at the moment. Meanwhile, Nikola has $10 billion in orders. In order to fill the gap, the stock could pull back to an area just below $900. Tesla’s market capitalization beat Volkswagen earlier this year. Awesome, happy to see this site up.. Unlike traditional EV recharging stations that supply electricity, Nikola’s refueling stations need to produce hydrogen, via a process of electrolysis. Thanks for the content, may the followers grow! Tesla’s Semi deliveries are likely to start around 2021 as well. Naturally, competitors would like to enter Tesla's space and grab a piece of the iconic company's market share. Hyliion vs. Nikola vs. Tesla. However, the bubble burst and most high-flying tech stocks at the time went into oblivion. This year, stock markets have found a new love for EV makers. The S&P 500 rallied from 2191 on March 23 to 3233 on June 8, for a gain of over 47% in less than three months. Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. However, Hydrogen fuel cell vehicles could have a couple of advantages, particularly in commercial applications. On the flip side, for a more balanced, risk-adjusted view see our analysis Tesla Valuation: Jump Into Tesla, Wait, Or Get Out? And Nikola is the underdog many are cheering for. The company expects positive vehicle gross margins in the second quarter. Right now, Tesla is hugging its 20-day moving average (blue). Brexit may finally arrive; how will the currency market react? NIO expects the gross margins to rise to double digits by the end of the year. EV (electric vehicle) makers including Tesla, NIO, and Nikola have surged this year. In June, electric vehicle manufacturer Tesla celebrated its tenth anniversary as a publicly traded company. Let's go to the charts and compare the technicals of these two competitors. While Nikola indicated that it has 14,000 orders for its semi trucks, these are unlikely to be binding, as there was no deposit money required. Is the rise in Tesla, NIO, and Nikola in 2020 reminiscent of the dot-com boom? This puts the market cap of the company, which went public earlier this month following a reverse merger with a publicly-traded special purpose acquisition entity, at about $23 billion - roughly in line with Ford, which sold over 5 million vehicles last year. Nikola’s primary focus will be on its electric semi-trucks, which will use hydrogen fuel cells instead of batteries that are used in EVs, including Tesla’s upcoming Semi truck. The problem is how much to pay for growth. Is this a good time to jump into Tesla stock? While Nikola’s hydrogen fuel-cell semi trucks are likely to begin deliveries only in 2023, the company will roll-out a battery-powered truck called Tre next year. First, you made Tesla look like it has a realistic value attached to it when you compared both Nikola Corporation (NASDAQ:NKLA) & Tesla Inc (NASDAQ:TSLA), like it's the yardstick. The deal allowed Nikola to go public without having to undergo the complex process of an actual IPO. Tesla short-sellers know what it means to bet against the stock this year. Final thought: keep in mind that this isn't a zero-sum game. I've recently stated that Tesla will reach $1200. This is in contrast with Tesla, which has built its own highly automated, vertically integrated manufacturing that should allow for lower costs and better efficiencies. What will happen to Tesla after Wednesday's earnings report? Like Tesla, this stock has formed a triangle, but in Nikola's case, it's a symmetrical triangle (black dotted lines). This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. While there’s no objective way to value Nikola, given that it has yet to deliver a vehicle, the stock appears risky at its current valuation of $23 billion. Whichever way the stock breaks will determine the direction of Nikola's next move. It is likely to maintain momentum in its current direction, independent of the overall market. For more details on the Class 8 truck market, and the market potential of Tesla’s Semi truck view our analysis Sizing Up The Potential Of Tesla’s Semi Truck, Nikola’s Fuel Cells Vs. Tesla’s Batteries. ... For example, as a dividend stock… While Tesla looks like a great bet in the long run, which S&P 500 component stocks have the best chance of outperforming the benchmark index in the near- to medium-term? The company raised cash by selling shares. Nikola isn’t making any real revenues, while NIO generated negative gross margins in the first quarter of 2020. Nikola is also in a consolidation phase, but unlike Tesla, the stock's chart is neither bullish nor bearish. Nio and Nikola shares have been speeding higher.. It is one of the global companies that develops and manufactures fuel cell products powered by hydrogen in the current alternative energy market. You may opt-out by. From a financial perspective, NIO expects to improve its financial performance this year. A reverse merger occurs when a privately-held company, in this case Nikola, merges with a publicly traded company.

Retail is back, and this stock's chart is a winner, Traders should approach this stock with caution. Early Customer Interest & Timeline For Deliveries. Nikola. While the initial manufacturing of Nikola trucks will begin at CNH facilities in Europe, the company intends to eventually build out a factory in Arizona. Going off chart, Nikola has some of the biggest players in the Class 8 trucking business involved in the company including Iveco, Meritor and Bosch.

The rise in stock prices has led to astronomical valuations for these stocks.

Tesla can’t be valued like traditional automakers. EV (electric vehicle) makers including Tesla, NIO, and Nikola have surged this year. Nikola’s Partner Driven Manufacturing Vs. Tesla’s Vertically Integrated Model. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. In this illustration is displayed on a smartphone's screen the company logo of Nikola Corporation, ... [+] which specialises in hydrogen-powered truck design and manufacture, is shown on the screen of a smartphone in front of a blue backdrop of the global stock markets and worldwide indices in Frankfurt, Germany, on 12th June, 2020. Opinions expressed by Forbes Contributors are their own. While EV makers’ market capitalization beat legacy automakers, there isn’t any comparison when it comes to their financials. What Do Analysts Expect for Procter & Gamble’s Q3 Earnings? However, the pace of electrification is debatable.