Nikola went public this month and already has a market cap over $20 billion, though it hasn't made any production vehicles. According TheStreet, some experts are skeptical about the company's future, such as Jim Cramer. Sound familiar?
Experts, including Cramer, have been skeptical about Tesla since the beginning. While Cramer and many others have recently changed their tune, there are plenty of people still counting on Tesla's failure. However, while Tesla has many products that have yet to come to market, it has proven for years that it can successfully produce and sell vehicles.
Not long after Nikola shares were first sold, the company began promoting its upcoming hydrogen and electric pickup truck, the Badger. The truck will be offered with a battery-electric powertrain with 300 miles of range, and another powertrain that adds hydrogen fuel-cell technology to up the range to 600 miles. It will be priced from $60,000 to $90,000. Nikola will open up reservations for the truck on June 29.
This week, CEO Trevor Milton took to Twitter and announced that Nikola will actually give one of these Badger trucks away as a prize. It will draw a name from the list of people who place a $5,000 reservation for the truck. Clearly, this is a way to get more attention on the Badger and to entice people to place a reservation. However, what company would give away a vehicle that's not even in production yet and may not be in production for a long time? Sound familiar?
Tesla gives away prizes as part of its referral program. Several of its biggest fans won an all-new Tesla Roadster (some people won two Roadsters). However, this happened a long time ago. The car doesn't yet exist and won't for some time. Some skeptics say these folks are never going to get their Roadster. Similar opinions exist about Nikola as a whole. TheStreet's Jim Cramer shared on Twitter:
“I was concerned and am concerned about people trading on phantom, orders, but when I try to raise these issues I am just trashed and trashed so sometimes it isn't worth it to try to help.”
At this point, only time will tell. We'd love to know what you think. Scroll down and leave us a comment.