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Nikola Remains a Day-Trading Stock, Guilfoyle Says

EV maker still overcoming past problems and struggling to deliver products.

Electric vehicle industry stocks like Nikola  (NKLA) - Get Nikola Corporation Report can be risky, but can work for short-term traders, argues Real Money's Stephen “Sarge” Guilfoyle.

“This would not be my first choice in the EV space,” Guilfoyle wrote recently of Nikola on Real Money. “I like Lucid  (LCID) - Get Lucid Group, Inc. Report and Rivian  (RIVN) - Get Rivian Automotive, Inc. Class A Report better, and have traded in and out of Lucid since going public.”

Nikola is not a long-term play for many reasons, he argues.

Nikola confirmed recently it settled with the U.S. Securities Exchange Commission on the actions taken during former CEO Trevor Milton’s era. The company said it would pay the SEC $125 million over five installments starting in December 2021 and ending in 2023.

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In addition, Guilfoyle noted, the  company hasn't actually moved much product.

The company is reporting its earnings in February and the consensus for adjusted EPS from eight analysts is a loss of 30 cents a share on estimated revenue of just $2.6 million. Analysts are expecting full year losses of $1.02 a share in 2022.

Not all the news about the company is negative, however.  Heniff Transportation Systems placed an order with Thompson Truck Centers in December, which is a member of the Nikola sales and services dealer network, to buy 10 Tre BEV trucks initially and could purchase another 90 trucks for the Heniff fleet.

Nikola also said it recently conducted its first customer delivery of a Tre zero-emission truck to Total Transportation Services in California.

Overall, however, “what I am telling you is that Nikola is purely speculative,” Guilfoyle wrote. “OK for day trading in my opinion ... The stars in this industry, if asked for my opinion, are Musk, and now [Ford's F Jim] Farley and [Lucid Group's LCID Peter] Rawlinson.”

Get more trading strategies and investing insights from the contributors on Real Money.