Electric truck start-up Nikola takes on automobile giants

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Nikola

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Nikola focused mainly on commercial trucks


An electric truck company that has yet to deliver a single vehicle already has a higher market value than the loyal Fiat Chrysler industry.

Since joining Nasdaq last week, the American start-up Nikola has seen its share price more than double, bringing its market value to $ 26.3 billion (£ 20.5 billion).

The gains came after the firm announced on Twitter that it would accept orders for its pickup truck.

The dramatic increase has made comparisons with a more established rival, Tesla.

Tesla has also seen its market value overshadow its traditional competitors, despite much weaker sales and a long history of financial losses.

On Twitter, Nikola chief executive Trevor Milton celebrated the rise in share prices, echoing Tesla boss Elon Musk’s social media presence.

Milton, now billionaire, said he aims to overtake Ford’s best-selling F-150 pickup and has vowed to do his part to be the most accessible and direct framework on Twitter “

What is Nikola?

Until recently, Nikola, who like Tesla takes its name from the inventor, had mainly focused its development on commercial trucks.

The company, which is based in southwestern America in Arizona, has received financial support from Bosch and companies related to the family of Fiat founder Giovanni Agnelli. He claims that the brewing giant Anheuser-Busch is a customer.

He had raised about $ 500 million before he signed up, but the company has yet to generate revenue. He lost more than $ 33 million in the first three months of the year.

In preparing for registration, Nikola estimated her net worth at around $ 3.2 billion. He raised more than $ 700 million at the start, which will go in part towards the construction of his manufacturing plant.

The 250-employee company said it has more than $ 10 billion in commercial truck pre-orders and plans to start delivering trucks next year. He will begin accepting orders for the Badger pickup on June 29.

Nikola’s share price rose on Tuesday as the Nasdaq hit a new record. At one point, the demand for Nikola shares drove prices so high that the company was worth more than $ 28 billion from Ford.

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