JPMorgan analyst sticks with buy rating on Nikola despite chairman's resignation

Founder of Nikola, Trevor Milton speaks during presentation of its new full-electric and hydrogen fuel-cell battery trucks in partnership with CNH Industrial, at an event in Turin, Italy December 2, 2019.
Massimo Pinca | Reuters

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Shares of Nikola are tanking on news of its founder's exit as executive chairman, but JPMorgan is standing by its bullish call on the high flying electric truck company.

The Wall Street firm stuck with its overweight rating on Nikola on Monday, but cut its 2021 price target to $41 per share from $45 per share to "reflect the risk associated with the resignation of the Founder and Executive Chairman."

The electric truck maker said the board accepted Trevor Milton's resignation. It said he'll be replaced by Stephen Girsky, former vice chairman of General Motors and a member of Nikola's board, effective immediately