Market Pulse Archives

Sept. 21, 2020, 6:44 a.m. EDT

Nikola investors take a 'gut punch' as Trevor Milton steps down as chairman, Wedbush says

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Nikola Corp. (NKLA)
  • X
    General Motors Co. (GM)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Trevor Milton's stepping down as Nikola Corp.'s /zigman2/quotes/208704275/composite NKLA +4.30% chairman was "shocking" and will leave investors with some "white knuckles," said Wedbush analyst Dan Ives, as it is now all about execution with the partnership with General Motors Co. /zigman2/quotes/205226835/composite GM -1.66% a "linchpin to its success." Nikola's stock plummeted 36% in premarket trading, putting them on track to open at a four-month low. "Trevor stepping down voluntarily at Nikola will be perceived by the Street as a major near-term gut punch for the company's lofty EV ambitions as he plays a key role strategically in driving the company's vision," Ives wrote in a note to clients. "In a nutshell, Nikola is still a 'prove me' stock, which speaks to why we are watching this from the sidelines with a neutral rating until we can get more confidence in the EV and hydrogen fuel cell execution story over the next 12 to 18 months." Milton stepping down comes a little over a week after short-seller Hindenburg Research said Nikola misled investors.

/zigman2/quotes/208704275/composite
US : U.S.: Nasdaq
$ 21.81
+0.90 +4.30%
Volume: 2.15M
Oct. 27, 2020 11:05a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.92 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 35.23
-0.59 -1.66%
Volume: 2.48M
Oct. 27, 2020 11:05a
P/E Ratio
33.71
Dividend Yield
0.00%
Market Cap
$51.26 billion
Rev. per Employee
$849,994
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.