3. Faraday Future
Faraday Future is a Los Angeles-based design and technology company that focuses on electric vehicles. It has managed to raise more than $2.4 billion in funding over six rounds, with the latest round in March bringing in more than $100 million. The lead investors in the startup include Ares Management, Birch Lake Partners, and others. Faraday is also planning a debut on the market sometime this year, and will merge with Property Solutions Acquisition Corp, with the combined entity valued at over $3.4 billion.
As the EV space becomes saturated, it is important to separate the good stocks from the bad. Nikola Corporation (NASDAQ: NKLA), the firm that aims to sell electric and hydrogen-electric vehicles, is a solid bet in the EV sector for the coming months. On May 28, investment advisory BTIG gave Nikola Corporation (NASDAQ: NKLA) stock a Buy rating with a price target of $18, calling the stock a future market disruptor.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based firm Inclusive Capital is a leading shareholder in Nikola Corporation (NASDAQ: NKLA) with 10.2 million shares worth more than $142 million.
In its Q4 2020 investor letter, Bireme Capital, an asset management firm, highlighted a few stocks and Nikola Corporation (NASDAQ: NKLA) was one of them. Here is what the fund said:
“Nikola Corporation (NKLA) is a poor-man’s facsimile of Tesla. Even the name is a blatant ripo: both are named aer the inventor Nikola Tesla. NKLA is a pre-revenue company founded in 2014 that has yet to bring a product to market, despite the promotion of a dizzying array of concepts:
Nikola Badger: pickup with both fuel-cell and electric variants
Nikola One: fuel-cell commercial semi-truck
Nikola Two: fuel-cell commercial semi-truck
Nikola Tre: electric commercial semi-truck
Nikola NZT: electric four-wheel drive utility vehicle
Nikola Reckless: electric military grade o-highway vehicle
Nikola WAV: electric watersports vehicle
As far as we can tell from their latest investor communications, only the Nikola Tre Commercial semitruck is still in development.
As far as we can tell from their latest investor communications, only the Nikola Tre Commercial semitruck is still in development. NKLA’s history is full of deception and vaporware. They showed a video of the Nikola One in motion; they later admitted that it didn’t work and was just rolling down a hill. NKA’s founder Trevor Milton resigned in disgrace aer Hindenburg Research published a report calling NKLA an “intricate fraud.” NKLA is currently under investigation by both the SEC and DoJ. Partnerships with GM, Republic Services and BP have been canceled. Nevertheless, the company sports an $8b market cap, because “electric vehicles.” Though pretenders are particularly ubiquitous in the bubbly EV industry, pretenders are to be found in many other industries as well.”
