Nikola rose again on Thursday. Is the red-hot stock a buy now?

Nikola (NASDAQ:NKLA) stocks posted another day of big gains in Thursday’s trading. The electric vehicle (EV) company’s stock price ended the daily session up 14%.

Shares of Nikola began gaining ground last week after the company celebrated the opening of its first Hyla hydrogen fueling station in Southern California. The rally got an extra boost after it was announced Wednesday that Alberta, Canada, would get its first commercial hydrogen fueling station thanks to Nikola’s Hyla brand and a partnership with Suncor, Leduc County, Emissions Reduction Alberta and Blackjack Roadhouse.

As Nikola shares are severely underperforming, positive developments in the field of hydrogen refueling also appear to be an issue Short press. Many investors had bet against the stock by borrowing shares in the hope that they could buy them back at a lower price and record the difference as a profit.

Is it time to buy Nikola stock?

Due to the sudden increase in the stock price, the short sellers are now apparently quickly buying back shares to close out their positions and avoid potentially huge losses. That purchase creates even more bullish momentum for the stock. Shares of Nikola are now up about 57% over the past five trading days.

While it’s possible that Nikola stock could continue to rise in the short term, it’s important to keep in mind that most short-term price gains tend to be quite short-lived. The EV specialist’s share price has already seen a dramatic rise, and the long-term prospects for the company remain fraught, despite recent signs of progress for its forecourt business.

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