Nikola VS Tesla: shares of Musk's rival are increasing in price

Have you heard about the American manufacturer of hybrid trucks that is called Tesla's rival? Founded in 2014, Nikola Motor Company plans to start producing electric trucks powered by hydrogen fuel cells in 2021. Besides, Nikola will build a network of hydrogen gas stations to provide its cars with fuel.

Friday, June 4, 2020 was the first day of trading Nikola Corp shares on the NASDAQ stock exchange. On the day of the company's release on the stock exchange, its quotes fell by 1 %, but on Monday, June 8, the securities soared in price twice. The capitalization of Nikola reached $26 billion, increasing by 104 % after announcing the start of taking reservations for the Badger pickup truck, that was posted on Twitter by the head of the company.

Such figures are comparable to the capitalization of Ford Motor ($29.9 billion) and are ludicrous: despite the ambitious statements and big plans, the startup ended up in losses last year, going into the red by $188.5 million. Besides, the previously announced release of the Badger electric pickup scheduled for 2021 can only exist as a planned event: Nikola will be able to implement this project only in partnership with one of the major car manufacturers. This information was published by Bloomberg referring to the securities handed over by Nikola to the U.S. Securities and Exchange Commission.

The business magazine Barron's called the rapid growth in the share price anticipated because the volatility of new companies is always higher than that of the others. Nevertheless, Bloomberg considers the rise in the price of Nikola securities "a new level of investor courage": if the shares of Tesla have repeatedly been called overvalued against the background of successful release and sale of real electric cars, what can be said about Nikola's shares – a company that is not yet ready to confirm the viability of its ideas in material terms?
We are interested in your opinion: how justified is the rising price for the shares of Nikola Motor Company?