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Nikola could fall 30% as 'ambitious' profit forecasts and Tesla's first-mover advantage weigh on valuation, CFRA analysts say

Posted On: Mar 4, 2021   |   Posted By: Business Insider

Nikola truck prototype.
Nikola
CFRA analyst Garrett Nelson initiated coverage on EV maker Nikola with a "sell" rating and a $15 price target.
The price target implies a nearly 30% drop from Monday's closing price.
Nelson said Nikola has "ambitious" profit forecasts and faces stiff competition from Tesla and others.
Watch Nikola trade live here.
CFRA analysts initiated coverage on electric vehicle maker Nikola with a "sell" rating and a $15 price target late on Monday. Analyst Garret Nelson said in his note that Nikola could fall nearly 30% from Monday's closing price due to "ambitious" profit forecasts, "significant execution risk", and Tesla's first-mover advantage. Nelson noted Tesla's dominance in electric vehicles will most likely translate to the commercial trucking segment that Nikola hopes to enter. The analyst said following the launch of Tesla's semi-truck later this year, that "it will become a preferred supplier to the Class 8 commercial truck market that NKLA intends to target." In an email to...

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