Enjoying a rally, Nikola experienced a dramatic drop of over 17% on Wednesday.
The company’s stock plummeted by 17.51% on Tuesday, closing at $4.38 on the New York Stock Exchange. Analysts attribute this steep decline to a wave of profit-taking following the recent surge in share prices.
Nikola’s stock had recently surged after announcing plans to supply two hydrogen trucks to logistics provider DHL Supply Chain and global beverage company Diageo in Illinois. The day before the drop, Nikola’s stock had skyrocketed by 20.14%, closing at $5.31, following an increase of nearly 5% over the weekend.
Nikola sold 72 hydrogen trucks in the second quarter alone. While two trucks may not seem like a significant number, it’s important to note that Nikola’s sales have primarily been concentrated on the West Coast, particularly in Southern California.
The delivery of two hydrogen trucks to Illinois marks Nikola’s initial entry into the Midwest market, which experts view as a significant expansion of the company’s sales footprint.
While this development contributed to Nikola’s recent stock rally, Wednesday’s sharp decline appears to have been driven by widespread profit-taking among investors.