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The company is grappling with supply chain disruptions and cost pressures. Due to supply-chain bottlenecks and inflation, the cost of clean trucks is currently higher than diesel vehicles. “It’s really a rotten time to have the costs go up,” Nikola CEO Mark Russell complained. The rising prices are proving to be a severe headwind for a money-losing startup like NKLA. Furthermore, the company faces intense competition from well-capitalized truck manufacturers and rival newcomers. NKLA cut its financial outlook for the year in August.
The recently identified omicron COVID-19 variant has increased investors’ anxiety. Investors’ anxiety rose after the CEO of Moderna Inc. (NASDAQ:MRNA) voiced concerns over the effectiveness of current vaccines. Furthermore, if lockdowns are reinstated, it could severely hinder NKLA’s growth trajectory. Over the past five days, the stock has declined 5.5% in price.
