Nikola (NASDAQ: NKLA) stock price has drifted upwards and is slowly approaching $1 ahead of the company’s earnings. The shares have risen to $0.9850, which is a few points above the year-to-date low of $0.8115. Nikola shares remains over 90% below its all-time high.
Nikola faces headwinds
Nikola, a manufacturer of heavy-duty trucks will be one of the top companies that will publish its quarterly results on Tuesday. These results will provide more color about the state of the company as it ramps up its production.
Earlier on Tuesday, the company said that it had expanded its partnership with Iveco, the giant truck manufacturing company. The partnership will now see Iveco Group focus its development and commercialization of its products in Europe while Nikola will focus on the North American market.
Analysts believe that Nikola’s losses continued in the first quarter. Precisely, they expect that the company lost 26 cents per share in the first quarter while its revenue came in at $12.35 million.
In addition to the revenue and profitability figures, Nikola stock price will react to the production numbers. In its most recent results, the company said that it had manufactured 133 trucks and delivered 20 to dealers. It also guided to delivering 250-350 Tre BEVs to dealers. The shares will likely rise if the company reaffirms or boosts its guidance.
The other catalyst for the NKLA stock price will be a statement about its financial position. As companies like Rivian and Lucid Motors have shown, car companies continue burning cash after manufacturing kicks off. In March, Nikola announced that it would raise $100 million in a secondary offering.
Nikola stock price forecast
NKLA chart by TradingView
It is hard to predict whether the NKLA share price will rise or fall after earnings on Tuesday. A look at the daily chart shows that the stock has been rising gradually ahead of earnings. It has moved below the 25-day and 5-day exponential moving averages. At the same time, the Relative Strength Index (RSI) is approaching the neutral point of 50.
If the shares jump after earnings, the next level to watch will be at $2, which was the lowest point on December 13. This view will be confirmed if it moves above $1 and $1.5. The alternative scenario is where the shares makes a bearish breakout and retest the year-to-date low of $0.80.
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