Nikola stock price sits at a pivotal level as risks remain

Core Viewpoint - Nikola Corporation is facing significant challenges despite recent growth in truck sales, with concerns about profitability and high operational costs impacting its stock performance [2][4]. Group 1: Financial Performance - Nikola's stock price is currently at $0.567, a crucial support level, having dropped over 36% this year and over 99% from its peak [1]. - The company sold 40 trucks in the fourth quarter, totaling 75 units sold, with expectations to sell between 300 and 350 trucks in the current year [2]. - Revenue from the HYLA truck is projected to be around $133 million this year, contributing to an expected total revenue of over $140 million, a significant increase from $35 million in 2023 [2]. Group 2: Operational Challenges - Nikola reported a revenue of over $7.4 million in the first quarter, but incurred a net loss of over $147 million, indicating ongoing financial struggles [4]. - The company may need to raise additional funds, having ended the last quarter with over $345 million in cash and equivalents, alongside $1.2 million in restricted cash [4]. - High costs associated with hydrogen fueling and logistical issues are significant barriers, with hydrogen fuel prices being three times higher than diesel [4]. Group 3: Market Sentiment and Stock Trends - Nikola's stock has been in a bearish trend, hovering around crucial support levels, with potential for further decline if it breaks below $0.5333 [6]. - Technical analysis indicates a head and shoulders pattern, suggesting more downside risk, with a potential drop to $0.40 [6].