Why Nikola stock soared 20% in just one day

Core Viewpoint - Nikola Corporation has faced significant challenges since going public in 2020, including stock price volatility and legal issues, but recent sales of hydrogen-powered trucks indicate a potential recovery [1][2][6]. Group 1: Stock Performance and Sales - NKLA stock peaked at $1,977 in mid-2020 but fell to $450 by the end of the year due to allegations of fraud and production issues [1][2]. - In October 2023, Nikola reported the sale of 88 Class 8 hydrogen fuel cell trucks, a 22% increase quarter-over-quarter, aligning with internal expectations [4]. - Following the sales announcement, NKLA stock surged by 19.57%, adding $0.91 to its share price in a single day [5]. Group 2: Legal and Operational Challenges - The company faced legal challenges, including a $165 million settlement related to fraud allegations against founder Trevor Milton [6]. - Nikola recalled all 209 electric trucks due to fire risks associated with their batteries, indicating ongoing quality issues [3][7]. Group 3: Future Outlook and Industry Position - While the pivot to hydrogen fuel cell vehicles shows short-term promise, long-term prospects remain uncertain due to the unproven nature of the technology at scale [8][10]. - The lack of hydrogen infrastructure and high costs present significant challenges, although Nikola is attempting to develop a network similar to Tesla's through its HYLA brand [9]. - The efficiency of hydrogen fuel cell vehicles is still debated, especially compared to established battery-electric solutions [10]. - If hydrogen adoption proves economically viable, Nikola could gain first-mover advantages in the green trucking niche, provided it manages its cash burn effectively [11].