Electric vehicle startups such as Nikola and Lordstown Motors are set to continue their impressive rally in share prices on Friday, leading these financially-strained companies to substantial weekly gains. Despite the lack of news or catalyst, the surge in the stock prices of these companies is largely attributable to a possible squeeze in heavily shorted stocks. Currently, Nikola has experienced an impressive 100% increase in value this week and has a short interest of 15.7%. Lordstown and Workhorse Group, which are also significant gainers, have short interests of 15.2% and 24.3%, respectively.
The boost could help Nikola overcome the risk of being delisted, which it received in May due to its stock price being below the $1 minimum level for the past 30 days. However, the share prices have increased by almost 20% in pre-market on Friday, indicating the possibility of staying above the minimum level for the third straight session and regaining compliance with Nasdaq’s norms if it trades above $1 for ten consecutive business days.
Tesla’s record-breaking 13-day win streak in the EV industry also coincided with the rise of NKLA and RIDE’s share prices by 17.14% and 9.03%, respectively. As the dominant player in the market, Tesla’s stock movements often have a considerable impact on other companies in the sector.
In conclusion, it seems that the electric vehicle industry is experiencing a significant boost in share prices, and these emerging startups are likely to continue their rally for quite some time. The increasing demand for electric vehicles gives hope for the sector, and the investors are optimistic about its future growth potential.
