Nikola stock extends loss as Deutsche Bank analyst slashes price target

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Shares of Nikola Corp. fell 1.8% in premarket trading Tuesday, adding to the 19.3% in losses suffered on Monday after the abrupt resignation of Founder Trevor Milton as executive chairman. Deutsche Bank analyst Emmanuel Rosner slashed his price target on the electric truck maker’s stock to $29 from $50, while keeping his rating at hold. He expressed concern that Milton’s resignation comes on the back of a short-seller’s report alleging instances of untruthful statements by Milton and reports of investigations by government regulators. “This latest development is clearly another negative development for the company, potentially making it harder to sign new partnerships and customers, and for [Nikola’s] stock which could struggle to regain credibility with investors,” Rosner wrote in a note to clients. The stock has still soared 167.3% year to date, while the S&P 500 has edged up 1.6%.
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