Nikola Corp. Stock Plunge Analysis: Hidden Opportunities Behind the Drop

What Is Nikola?

Nikola Corporation (Ticker: NKLA / OTC: NKLAQ) is a U.S.-based manufacturer of electric and hydrogen fuel cell trucks. Founded in 2014, the company focuses on the heavy-duty commercial zero-emission truck sector.

Zero-emission heavy trucks are widely viewed as the future of transportation, which once made Nikola a market favorite.

Recent Stock Performance and Key Metrics

As of October 23, 2025 (UTC), Nikola traded on the OTC market at approximately $0.0121. Over the previous 52 weeks, the stock hit a low near $0.0001 and a high of roughly $5.54. Put simply, the share price has reached its lowest point, plunging from several dollars to just pennies—or even lower. As of this date, the Nikola stock price is approximately $0.01.

Major Recent Negative Developments

• In February 2025, Nikola filed for Chapter 11 bankruptcy and began the asset liquidation process.
• The company reached a settlement of approximately $83 million with the U.S. Securities and Exchange Commission (SEC).
• Shares and trading volume are extremely low, institutional analyst coverage is limited, and Nikola faces substantial debt pressure; Nikola faces a deep crisis in its fundamentals.
• Nikola has faced allegations of significant “exaggeration,” regulatory investigations, criminal conviction of its founder, and complex licensing issues.

Investor confidence is extremely weak. Liquidity remains poor, and future prospects are highly uncertain due to these developments.

Are These Risks Already Priced In?

With the share price down to mere pennies, the market seems to have largely “priced in” the likelihood of Nikola’s failure or a dramatic loss in value. This extremely low valuation means that any positive news could trigger a rebound; on the other hand, more bad news could send the stock to zero. It is important to note that a low share price does not indicate low risk. The company is in bankruptcy protection, assets may be auctioned off, and shareholders could lose everything. The potential for significant appreciation involves extreme speculation, while the potential for complete loss reflects a more conservative outlook.

If You’re New—How Should You Approach This?

• Clarify your goals: Are you speculating on a potential rebound, or seeking a stable investment? Nikola is firmly in the “high-risk speculation” category.
• Limit your position size: Even if you get involved, keep your investment very small—losses could reach nearly 100%.
• Look for catalysts: For example, successful restructuring, assets sold above book value, or an unexpected boom in hydrogen truck demand. Without catalysts, the stock may continue to decline.
• Consider your timeline: How long are you willing to wait? Bankruptcy restructuring can take a long time and may remain unresolved. Long waits mean a significant opportunity cost.
• Explore alternatives: If you’re interested in the “electric/hydrogen truck” theme, there may be companies with much lower risk than Nikola.

Summary: Opportunity or Trap?

Bottom line: Nikola’s stock has collapsed from several dollars to just pennies, with most risks already reflected in the price. If a miracle occurs—such as an asset acquisition, a surge in hydrogen truck demand, or a successful restructuring—the stock could experience a dramatic rebound. However, the risks are enormous: Nikola could fail entirely and shareholders could lose everything. For beginners, this is much more of a high-risk speculative play than a stable investment. If you invest discretionary funds, be mentally prepared; if you seek stability, exercise caution or consider less risky alternatives.