According tomedia reports, the market value of the electric truck maker Nikolay reached $23 billion on Friday, up from $34 billion in midweek. Although the start-up has yet to sell a car, it was once worth more than Ford ($26 billion). Why on earth is this?
Last week, the shares of various electric vehicle companies were doing well.
Tesla’s shares broke through $1,000 on Wednesday, surpassing Toyota as the world’s most valuable carmaker. Meanwhile, another electric car start-up that has never sold a car is worth more than Ford and Fiat Chrysler.
On Wednesday, Nicola’s market value reached a high of $34 billion. Unlike Tesla, which started making luxury electric cars, Nikolai is developing electric pickups and electric trucks powered by hydrogen fuel cells.
Earlier this month, Nicola went public through the shell VectoIQ. VectoIQ is a shell company set up specifically for the listing of a private company. Less than a week later, Nicola surpassed established car companies such as Ford and Fiat Chrysler in market capitalisation, and in fact has yet to sell any.
The selling point of Nicola’s propaganda is loud. First, like Tesla, Nicola is planning to build a network of charging stations designed to enable consumers and fleets to use charging stations to recharge their cars.
Second, Nicola plans to build her own hydrogen battery. So far, other manufacturers of fuel cell trucks have not said they have the same plan. This is definitely a potential advantage for Nicola. Sam Abuelsamid, chief analyst at Navigant Research, a market research firm, said.
In addition, Nicola has formed a partnership to solve supply chain and manufacturing problems on her own. And Nicola makes trucks very differently. It doesn’t do everything by itself, it shares expertise with truck manufacturers and is paid for intellectual property research and development.
“We’re vertically integrating the entire supply chain. Trevor Milton, chief executive of Nicola, explained how the company eventually reached a market capitalisation of $100 billion.
Nicola’s two target markets are consumer pickups and commercial trucks. These two segments have huge potential and have not yet been broken by electric car makers, and Tesla has only released products that have yet to go on the market.
Interestingly, both Nikolaand and Tesla’s names come from a great man: Serbian-American inventor Nikola Tesla, best known for designing modern AC power systems. Tesla has been hot in recent years, and Musk has become a star in the tech industry, driving the popularity of electric cars. Perhaps Nikolai is using Tesla’s halo effect.
But Tesla’s super fans also wonder if Nicola will upend expectations in the same way.
Sam Korus of Ark, a consultancy, also took to Twitter to express skepticism: “The craziest thing about Nikolai is that the prices they plan to release are not competitive with the Tesla Semi electric trucks. In addition, Nicola’s technology platform has not yet been validated. The cost of infrastructure expansion is an order of magnitude higher. “
The Tesla pickup, badger, will be available later this year and will cost between $60,000 and $90,000, while Tesla’s Cybertruck electric pickup will sell for between $39,000 and $69,000.
And last week, Musk said in an email that it was ready to mass produce the electric truck, the Semi.
So Mr AbuSayder said that while Mr Nikolai was doing “some very interesting things”, the current valuation level was “ridiculous”.
“So far, they haven’t produced anything but a few prototypes. They don’t have income. They’ve promised something, and I doubt they’ll make it. But it’s really too early to raise the value of the company in this way. “
Dan Ives, an analyst at Wall Street’s Wedbush, said the stunning rise in Nikolai’s market value was also a sign of a shortage of supply, and that both Tesla and Nikolai could benefit.
“There is a supply and demand problem with listed stocks in the electric vehicle sector at the moment. Investors are looking forward to getting involved in electric cars. “