Nikola stock tries to recover after short seller’s report

Nikola (NKLA.US) shares tumbled anew at the beginning of today’s session. However, as time goes by, bulls have managed to regain control and stock price bounced off key support level. At press time shares are up more than 3%.

Nikola shares have been losing ground in the past few days. The move was triggered by a short seller’s report indicating that the electric-truck maker was deceiving investors about its technology. Since September 9 shares have lost as much as 40%. Last week the company stated that allegations are false. Today the firm added that these misleading statements were designed to manipulate the market.

The $29.50 area turned out to be key support level as Nikola stock managed to rebound. Nevertheless investors should still be prepared for further engagement between electric-truck maker and Hindenburg Research which released its challenging report. Source: xStation5

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