The quarterly earnings report from Nikola (NASDAQ:NKLA) and Workhorse (NASDAQ:WKHS) should not matter much. Both clean energy firms reported major negative catalysts that will hurt their prospects. Nikola is a perpetual short candidate.
The controversy around Nikola’s prospects continues to hurt the stock. Short float is 22.2%. Bears are betting that rising development costs for a clean energy vehicle, high capital requirements for manufacturing facilities, and a lack of a production partner like General Motors (GM) will lead to further losses.
On Wall Street, most analysts rate the stock as a "hold" (per tipranks). The average price target is $29.29. Assuming the analyst reports do not encourage stock buying, NKLA stock faces downward pressure.
Last week, the United States Postal Service announced a truck supply deal with Oshkosh (NYSE:OSK). For months, Workhorse investors bet the clean energy truck supplier would win the contract. Bears, who had a 17% short float bet against the company, won in the end. WKHS stock will likely hold current levels and risk drifting lower in the week ahead. WKHS no longer has the USPS deal as a catalyst to support the stock price.
Investors who speculated on Workhorse are better off waiting for a deal first and paying a premium on shares.
Avoid both WKHS and NKLA stock.
