Nikola’s Collapse Is A Red Flag For The Stock Market

Brace yourselves for the future

Before we start talking about Nikola, we first have to talk about Tesla…and honestly, there isn’t too much to say about Tesla.

All people really care about is this graph…

Yes, I took this screenshot on an ugly post-Battery Day for Tesla’s stock, but it wasn’t too long ago when Tesla challenged $500/share.

And I wouldn’t be too upset with a 927.17% gain.

When people look at graphs like these, they wish they jumped on the ride sooner.

“If only I bought Tesla back in 2019,” and other thoughts like that one.

Some will look for the next Tesla stock that has enough prospects to potentially deliver the same types of returns.

We also live in a stock market where net income doesn’t matter and it’s all about revenue and potential growth.

Puff up some numbers and get into the EV space, and now you’re the next big hit.

Investors who still regret missing out on Tesla’s meteoric rise gobbled up every small EV stock they could find hoping it would be the next Tesla.

Even if it falls short of becoming the next Tesla, maybe it at least 10Xes in value. Besides, it’s an EV company with incredible growth prospects…right?

This is the late stages of a greedy stock market due for a reality check.

Nikola was exposed as a fraudulent company and it’s stock price has followed suite falling more than 35% in the past week. There were some warning signs earlier. The only source of revenue on the balance sheet was the founder purchasing solar panels for himself.

Furthermore, he decided to not show up for the first earnings call and went on an extravagant 6-day vacation to the Bahamas instead.

That’s not a leader, and now he’s hiding. Not only did he resign from the company but his Twitter account has also vanished.