Nikola Opens $5,000 Reservations for Badger ETruck

Nikola shares rose Monday amid the opening of $5,000 reservations for the electric-vehicle maker’s pickup truck.
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Nikola  (NKLA) - Get Report shares on Monday rose amid the opening of $5,000 reservations for the electric-vehicle maker’s pickup truck.

Prototypes for the Badger haven’t been offered yet. Nikola said in a March filing that it didn’t expect to form plans for the vehicle unless an established automaker agreed to produce it. The company hopes to build Badger trucks by year-end

Nikola later this summer will provide more details about its Badger manufacturing partnership, Colleen Robar, a spokeswoman for the company, told Bloomberg. The $5,000 reservation is refundable.

The Badger will come in two models: a battery-electric vehicle, which has about 300 miles of range, and a fuel-cell electric vehicle, which has double that range.

Last week, J.P. Morgan initiated coverage of the electric-truck maker with a neutral rating and a price target of $45.

It’s not that the analysts, led by Paul Coster, don’t like the company. They just figure that the stock, which recently traded at $69.05 Monday, up 8.65%, is fully valued.

"NKLA is poised to disrupt the transportation industry, with rapid deployment of hydrogen infrastructure and [fuel cell electric] vehicles for use on long-haul trucking routes, reducing carbon dioxide emissions meaningfully and positioning the firm for a key role in the future hydrogen economy," the analysts wrote in a commentary.

"The resulting business model could be compelling.”

But “risks are elevated for this pre-revenue company, and the stock looks fully valued here," the analysts said.

Nikola shares have doubled since the company went public June 4. At last check shares of the Phoenix company were 5.6% higher at $67.12.