Nikola Corporation (NASDAQ: NKLA) stock increased almost 2% during Tuesday’s intraday trading session amidst a rally in heavily shorted stocks fueled by retail investors.
The return of Roaring Kitty to social media has reignited the meme stock frenzy, extending its reach to include stocks with high short interest, such as Nikola (NKLA). Data from Benzinga Pro indicates that a substantial 36.87% of available Nikola shares are being sold short, making it a prime target for meme stock traders.
Keith Gill, also known as Roaring Kitty, played a pivotal role in fueling the meme stock craze of 2021. After a nearly three-year hiatus, Gill made a mysterious return to social media over the weekend with a cryptic post depicting a gamer leaning forward in his chair. Subsequent posts included videos from action movies and TV shows, sparking speculation and excitement among meme stock enthusiasts.
In the wake of Gill’s posts, meme stocks like GameStop (GME) and AMC Entertainment (AMC) experienced explosive gains, with AMC stock soaring more than 100% over the past five trading days.
Meanwhile, Nikola stock has also surged amid reports indicating that the Biden administration is considering raising tariffs on Chinese electric vehicle imports from 25% to 100%. Sources familiar with the situation suggest that the administration plans to announce the tariffs on EVs on Tuesday, with additional tariffs on other clean energy imports, including batteries, to follow later in the week.
Nikola (NASDAQ: NKLA) Stock Reaction
NKLA stock rose 1.89% to close at $0.56 on Tuesday. Its value decreased by 7.07% this week. Trading activity has witnessed 127,916,344 (127.91 million) shares changing hands, well above the average daily volume of 98.03 million.
