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Nikola's Stock Plummets: Can the Electric Truck Maker Recover?
Ryan Serkes
January 24, 2025
The
Daily Trade
Good morning.
Today’s newsletter dives into a whirlwind of significant events shaping the financial landscape. Nikola Corporation's stock took a steep dive of 27.8% as the electric truck manufacturer considers selling parts or all of its business, raising serious concerns about its financial health. Meanwhile, Keurig Dr Pepper gears up to unveil its financial results, offering insights into its performance in a competitive beverage market that investors are keenly watching.
In real estate, California steps up with mortgage relief for wildfire survivors, while Redfin reports on a troubling affordability crisis for homebuyers. On the crypto front, President Trump’s recent speech at Davos has sparked discussions about the U.S. economy and energy policy, leaving investors eager for what’s next. Buckle up for an insightful read!
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Here's what's happening today:
Today in the Stock Market- Nikola shares plunge amid sale rumors 📉
- Keurig Dr Pepper to report Q4 results soon ☕
- AI founder indicted over fraud allegations 🤖
- Mortgage relief for wildfire survivors announced in California.
- Redfin reports 2024 as second-least affordable year.
- Old Kmart site in Raleigh to be redeveloped.
- Toll Brothers launches luxury homes in Encinitas.
Question
What are your thoughts on Nikola's drastic stock drop—do you think the company can recover from this setback, or is it time for investors to look elsewhere?
Reply to this email with your answer
Today in the Stock Market
 Nikola's Stock Crashes as Sale Options Are Explored Shares of Nikola Corporation experienced a significant decline of 27.8%, closing at 85 cents, following reports that the electric truck manufacturer is considering selling parts or the entirety of its business. This drop in stock price reflects investor concerns, especially after the company recently warned that it only has enough cash to sustain operations into the first quarter of 2025. Nikola's situation has worsened, hitting a new 52-week low at 76 cents prior to the market close, raising alarms about its financial health and future prospects. The report from Bloomberg News highlights that Nikola is exploring various options, including potential partnerships and fundraising efforts. CEO Steve Girsky, who has a substantial stake in the company, mentioned during a prior earnings call that discussions with potential partners are ongoing. The company, which went public through a SPAC merger in June 2020, has faced significant challenges and scrutiny, similar to many other electric vehicle companies that have struggled to meet initial expectations. Nikola's financial troubles are compounded by a history of federal investigations and executive instability. As the company navigates these turbulent waters, its future remains uncertain, and investors are keenly watching for any developments regarding its strategic options and financial recovery efforts. |
 Keurig Dr Pepper Set to Release Financial Results Keurig Dr Pepper Inc. is preparing to announce its financial results for the fourth quarter and full year ending December 31, 2024, with the release scheduled before the market opens on February 25, 2025. The announcement will be accompanied by a conference call at 8:00 AM ET, featuring insights from CEO Tim Cofer and CFO Sudhanshu Priyadarshi. Investors and analysts will have the opportunity to engage in the call, which can be accessed via specific dial-in numbers for both domestic and international participants. This financial disclosure is particularly significant for stakeholders, as it will provide a comprehensive overview of the company's performance over the past year, including sales figures and strategic initiatives. The company has been navigating a competitive beverage market, and the results are anticipated to shed light on how well it has adapted to changing consumer preferences and economic conditions. A replay of the conference call will be made available shortly after the live event, allowing interested parties to review the discussions at their convenience. As the beverage industry continues to evolve, Keurig Dr Pepper's performance metrics will be closely scrutinized by market analysts and investors alike, given their implications for future growth and market positioning. |
 AI Startup Founder Arrested on Fraud Charges Alexander Charles Beckman, the founder of the AI company GameOn, Inc., was arrested on multiple charges related to extensive fraud schemes that allegedly spanned several years. The U.S. Department of Justice has unsealed a 25-count indictment against Beckman and his wife, Valerie Lau Beckman, accusing them of conspiracy, wire fraud, securities fraud, and identity theft. The couple is alleged to have defrauded investors from September 2018 to July 2024, misusing over $4 million in investor funds for personal expenses, including real estate and private school tuition. The indictment outlines a pattern of deceit where Beckman allegedly provided investors with false financial statements that inflated revenue and misrepresented the company's financial health. GameOn, known for its chatbot technology that served various high-profile clients, became embroiled in scandal as the couple reportedly used fake identities and documents to further their fraudulent activities. The situation escalated to the point where Lau is accused of attempting to retrieve a fake bank statement while accompanied by an investor, showcasing the depth of their alleged deception. Both Beckman and Lau made their initial court appearances recently, facing severe penalties if convicted. Lau could face an additional 20 years for obstruction of justice, highlighting the serious legal ramifications of their actions in the tech industry, particularly in the AI sector, which has been under increasing scrutiny for ethical practices. |
Today in Real Estate
 California Offers Mortgage Relief for Wildfire Survivors California Governor Gavin Newsom has announced that over 270 state banks and credit unions will provide mortgage relief to homeowners affected by recent wildfires in Los Angeles and Ventura counties. This initiative includes a 90-day forbearance on mortgage payments, allowing homeowners to prioritize their immediate recovery without the stress of mortgage obligations affecting their credit scores. The relief is aimed at specific ZIP codes heavily impacted by the fires, ensuring that those most in need receive assistance. Financial institutions participating in this relief effort will not report missed payments during the forbearance period, thus providing a critical safety net for affected families. Newsom expressed gratitude to the financial institutions for their support and emphasized the importance of collaboration in aiding recovery efforts. The California Bankers Association and other organizations have also voiced their support for this initiative. This announcement mirrors actions taken by major banks, including Bank of America and JPMorgan Chase, who have also offered similar relief measures. State officials are committed to expediting recovery for wildfire survivors, with additional measures like an extended tax filing deadline for affected residents. This comprehensive approach aims to provide both immediate relief and long-term support for those navigating the aftermath of the catastrophic firestorm. |
 Redfin Reveals 2024's Home Buying Affordability Crisis According to a recent report from Redfin, 2024 has emerged as the second-least affordable year for homebuyers in the U.S. since 2012. Households earning the typical income would need to allocate approximately 42% of their earnings to cover monthly housing costs, a situation that remains unchanged from 2023. With the median household income at $83,782 and the typical home price at $429,734, many Americans are finding homeownership increasingly out of reach. This trend has persisted for four consecutive years, with the income required to comfortably afford a home surpassing what the average household earns. In 2024, buyers would need an annual income of $116,782, marking the highest threshold since Redfin began tracking affordability metrics. The report highlights that homes are considered affordable when monthly housing costs do not exceed 30% of a household's income, a standard that many are unable to meet. While some regions, such as parts of Pennsylvania, reported slightly better affordability than the national average, the overall outlook remains grim. Experts predict that home prices will continue to rise due to insufficient inventory, compelling more potential buyers to remain in the rental market. The ongoing affordability crisis underscores the need for strategic solutions to address the housing shortage and support aspiring homeowners. |
 Raleigh's Kmart Site to Undergo Major Redevelopment CityPlat, a prominent developer in the Triangle area, has acquired the former Kmart property located at 4500 Western Blvd. for $14 million. This site, strategically positioned at the intersection of Western Boulevard and Interstate 440, presents a significant redevelopment opportunity due to its size and traffic potential. CityPlat has established a reputation for revitalizing urban spaces and plans to transform this property into a vibrant community hub. The acquisition aligns with CityPlat's ongoing efforts to enhance the local landscape, as they have previously developed various properties in the area, including notable sites on Hillsborough Street. The Kmart site is one of the last large parcels available near the beltline, making it an attractive option for future development that could accommodate both residential and commercial needs. As CityPlat moves forward with this project, community stakeholders and local officials anticipate that the redevelopment will not only enhance property values in the surrounding area but also create new jobs and foster economic growth. The project is expected to attract significant attention and investment, further solidifying Raleigh's position as a dynamic and evolving urban center. |
Toll Brothers Unveils Luxury Community in Encinitas Toll Brothers has announced the opening of its latest luxury home community, The Cove at Encinitas, located in Southern California. This exclusive neighborhood features a limited collection of 42 homes, each designed with modern coastal architecture and situated less than a mile from the beach. The homes range from approximately 1,600 to over 4,000 square feet, offering a variety of floor plans that cater to diverse buyer needs, including options for single and two-story designs. With prices starting at $2.27 million, The Cove at Encinitas is positioned to attract affluent buyers seeking upscale coastal living. The homes are equipped with energy-efficient features, including solar systems and pre-wiring for electric vehicle charging, reflecting a growing trend towards sustainability in luxury real estate. Residents will also benefit from community amenities such as pocket parks and proximity to local shopping and dining options. Brad Hare, Division President of Toll Brothers in Southern California, expressed excitement about the community's launch, emphasizing its prime location and exceptional design. As part of Toll Brothers' commitment to quality and innovation, prospective buyers will have the opportunity to personalize their homes at the Toll Brothers Design Studio, ensuring that each residence meets their unique preferences and lifestyle. |
Today in Crypto
 Trump's Bold Davos Speech: A Call to Action for U.S. Economy Recently, President Donald Trump delivered a significant address at the World Economic Forum in Davos, Switzerland, marking his first major international appearance since returning to the White House. In a pointed 45-minute speech, he criticized European regulators for their stringent policies on U.S. tech firms, oil companies for high prices, and big banks for alleged discrimination against conservative clients. Trump urged nations globally to invest in the United States, promising an attractive economic environment characterized by low taxes and reduced regulatory burdens. During his address, Trump emphasized the United States' vast oil and gas reserves, asserting that leveraging these resources would lower costs across various sectors and elevate the U.S. to a manufacturing powerhouse. He also declared intentions to engage with Saudi Arabia and OPEC to lower oil prices, showcasing a proactive approach to energy policy. His remarks led to an immediate decline in crude oil prices, reflecting market reactions to his statements. The session concluded with a Q&A involving prominent figures from the financial and energy sectors, including leaders from Blackstone and Bank of America. Trump’s comments also touched on his administration's recent controversial moves to dismantle diversity initiatives within federal agencies, reinforcing his commitment to a merit-based system. His speech underscores a broader strategy aimed at revitalizing the U.S. economy and positioning it as a leader in artificial intelligence and cryptocurrency. |
Today's Technical Analysis
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Hold | STOCH Sell |
RSI Sell | MFI Hold | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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