What's Going On With Nikola Corporation Stock?

Nikola Corp NKLA shares are trading higher by 8% to $1.11 over the trailing five sessions, recovering following the company's recent earnings report.

The company earlier this month reported disappointing sales results, primarily due to a lack of truck production and only 3 truck shipments in the quarter.

Despite receiving orders for 277 hydrogen fuel cell electric trucks and 47 battery-electric trucks, the company posted a large gross loss of $125.5 million, expanded EBITDA loss of $188.6 million and an adjusted EPS loss of 30 cents, missing consensus estimates.

Nikola also anticipates increased expenses due to a truck recall, which will raise the necessary capital to achieve profitability by 2025, according to Reuters.

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What Else?

Nikola shares were volatile last Friday after Plug Power Inc PLUG reported worse-than-expected third-quarter financial results. Investors in the hydrogen industry may react similarly to negative news about one company, leading to a broader sell-off.

This is particularly true if there's a perception that challenges faced by one company, such as Plug Power, reflect broader issues within the industry.

Investor sentiment can have a contagious effect on other stocks in the same sector.

According to data from Benzinga Pro, NKLA has a 52-week high of $3.71 and a 52-week low of $0.52.