Nikola was up again on Thursday. Is this hot stock worth buying now?

Nicolasfirms（Nasdaq ResonanceStock Code(NKLA)Stocks logged another day of big gains in Thursday trading. Shares of the electric vehicle (EV) company closed up 141 TP3T.

Last week, Nikola's stock price began to rise after the company celebrated the opening of its first Hyla hydrogen fueling station in Southern California. On Wednesday, the company's announcement that Alberta, Canada, will host the first commercial hydrogen fueling station under Nicola's Hyla brand, in partnership with Suncor, Leduc County, the Alberta Emissions Reduction Organization and Blackjack Roadhouse, gave additional momentum to the stock price increase.

As Nicola's stock has been heavily shorted, it appears that the aggressive development of the hydrogen fuel noodles has also triggered a wave of short selling. Many investors are betting on the stock by borrowing shares in the hope of buying them at a lower price and taking the difference as a profit.

Is it time to buy Nicola's stock?

With the sudden surge in the stock price, it is now clear that short sellers are quickly buying back shares to close out their positions and avoid potentially large losses. This buying is giving the stock even more bullish momentum. Over the past five trading days, Nikola shares have risen about 57%.

While it's possible that Nikola shares could continue to move higher in the near term, it's important to remember that most short positions tend to be relatively short-lived. Shares of the electric-vehicle specialist have risen sharply, and while there have been recent signs of progress in its gas station business, the long-term outlook for the business remains uncertain.

Nikola's fuel cell electric car trucks remain the company's primary source of revenue, and they continue to be sold at large losses. Last year, the company reported net losses of about $966.3 million on sales of about $35.8 million.

With the business burning through money at a rapid rate, Nicola needed to sell new shares or raise debt to get new capital. The company's poor track record of delivering and honoring its commitments, its weak business momentum and its financial position suggest that the stock will not be a long-term investment.

Should you invest $1,000 in Nicola now?

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Nikola was up again on Thursday. Should You Buy This Hot Stock Now? This post was originally published by The Motley Fool.