What's Going On With Nikola Stock?

Nikola Corp NKLA shares are trading lower by 5% to $0.61 Monday, despite a lack of company-specific news for the session. Shares may be falling amid ongoing volatility in the broader EV sector amid peer EV company Fisker Inc FSR falling significantly in recent sessions following a Wall Street Journal report suggesting the company is preparing for a possible bankruptcy filing.

Additionally, Fisker on Monday announced it secured a financing commitment of up to $150 million from an existing investor through four tranches, subject to certain conditions including the filing of its 2023 Form 10-K.

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Why This Matters To NKLA Investors

The EV industry is highly competitive, and the success or failure of one company can reflect on others in the same space. If Fisker, a peer company, is facing financial troubles or potential bankruptcy, investors might start to question the financial health and viability of other EV companies, including Nikola.

Any indication of financial instability within the EV sector can erode investor confidence. If investors perceive that EV companies are struggling to stay afloat or facing significant hurdles, they may sell their shares in anticipation of further declines, leading to a drop in stock prices across the sector.

How To Buy NKLA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Nikola's case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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

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