Nikola Tesla died penniless.
But two new modern robber barons are making hay with the name of the pioneer of AC or Alternative Current.
Musk has already made a successful company out of the legend’s lasts name. Tesla is the most valuable automobile company in the world.
Now a new company went public with his first name except this company will be making EV trucks. Everyone is salivating over the potential to make out sized gains just like how the Tesla car company made some people rich.
But Nikola, with ticker symbol NKLA went public in a complicated fashion.
They formed an acquisition company or SPAC known as a Special Purpose Acquisition Company to take the company public. The SPAC was called VTIQ and it was trading for about 30 dollars last Friday June 5, 2020.
Boom………. the stock popped to 70 dollars in regular trading and closed at 80 dollars after hours.
I think it’s almost like an IPO, except everyone got an opportunity to buy at a pre-IPO price using the shares of the SPAC.
Nikola has no revenues, not a single truck made or sold. The company was valued at 25 billion dollars last week and is now valued at over 50 billion dollars today. More than any other truck maker and even more than Ford.
Currently, it may be highly overvalued but you can never predict this market. Everyone that missed out on Tesla is trying to get on this train.
Now should we brace for a big drop in this stock?
The word is those small traders on Robinhood are driving up prices of many stocks into unheard-of territory………Welcome to the Wild West!
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