Why Nikola Stock Dropped 6% Tuesday

Howard Smith, The Motley Fool
·2 min read
Why Nikola Stock Dropped 6% Tuesday

Shares of electric-vehicle start-up Nikola (NASDAQ: NKLA) continued an extended price decline today, after dropping more than 50% in the last three months. As of 4:35 p.m. EDT Tuesday, Nikola shares were down more than 6% on the day. The electric-vehicle (EV) sector has been under pressure as lofty valuations and questionable business plans have driven investor sentiment away from pre-revenue companies like Nikola.