What's Going On With Nikola (NKLA) Shares

Nikola Corp NKLA shares are trading higher by 10.77% to $1.44 Friday afternoon, rebounding following Thursday weakness. The stock is rebounding Friday following better-than-expected U.S. jobs data released Thursday, which could raise concerns over further rate hikes.

See Also: Nikola Truck Fire Probe: No Evidence Of Arson Found

Shares of several EV stocks are also trading higher Friday potentially in symathy with Rivian Automotive Inc RIVN after Wedbush raised its price target on the stock from $25 to $30.

What Happened?

In the latest June FOMC Minutes, the Federal Reserve highlighted that while job market conditions remain tight, there were some signs of supply and demand in the labor market moving toward a better balance.

These new labor market data points arrive just one day before the highly anticipated non-farm payrolls report, which is set to be released Friday morning...Read More

What Else?

When interest rates rise, it becomes more expensive for companies to borrow money. As a result, hydrogen EV companies, including Nikola, may face higher interest expenses on their existing debt or struggle to secure affordable financing for their operations and expansion plans. This can put a strain on the financial health of growth companies.

According to data from Benzinga Pro, NKLA has a 52-week high of $8.97 and a 52-week low of $0.52.