Nikola Corporation (NKLA) Posted a New All-Time Low in Q4

Investment management company Bireme Capital recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 34.7% net of fees compared to a 7.6% return for the S&P 500. The strategy has compounded at 27.4% annualized, besting the market by 16% a year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Bireme Capital highlighted stocks like Nikola Corporation (NASDAQ:NKLA) in the Q4 2022 investor letter. Headquartered in Phoenix, Arizona, Nikola Corporation (NASDAQ:NKLA) is a technology innovator and integrator.  On February 17, 2023, Nikola Corporation (NASDAQ:NKLA) stock closed at $2.5100 per share. One-month return of Nikola Corporation (NASDAQ:NKLA) was -0.40%, and its shares lost 68.31% of their value over the last 52 weeks. Nikola Corporation (NASDAQ:NKLA) has a market capitalization of $1.287 billion.

Bireme Capital made the following comment about Nikola Corporation (NASDAQ:NKLA) in its Q4 2022 investor letter:

“Nikola Corporation (NASDAQ:NKLA), the “manufacturer” of alternative-energy vehicles, was down 31% in Q4 to new all-time lows. Contrary to 2021, the company did book revenues this year. They sold a few hundred trucks. However the company failed to generate even a gross profit, losing $59m before considering costs like marketing, G&A, and depreciation. Nikola has burned about $500m of cash this year but management prudently (albeit partially) financed this by selling over $100m of newly issued stock into the open market. But even with the stock down 75% from its de-SPAC price we think these new investors may never see a positive return.”

Photo by Mika Baumeister on Unsplash

Nikola Corporation (NASDAQ:NKLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Nikola Corporation (NASDAQ:NKLA) at the end of the third quarter, which was 13 in the previous quarter.

We discussed Nikola Corporation (NASDAQ:NKLA) in another article and shared the list of best battery stocks to buy heading into 2023. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.