NKLA - Nikola slides to all-time low after capital raise BTIG downgrade rattles investors

2023-03-31 12:09:07 ET

BTIG downgraded Nikola Corporation ( NASDAQ: NKLA ) on Friday following the announcement by the company of a $100M share offering.

Analyst Gregory Lewis and team said the cash injection will provide a near-term liquidity boost, but see more work ahead ahead for the company with its cash burn rate to prevent another capital raise.

Looking even further ahead, Lewis noted that while demand remains strong for decarbonizing the trucking industry, the firm expects the buildout of infrastructure to be a multi-year process for Nikola ( NKLA ).

"Key to the longer-term growth of the hydrogen business will be partnerships to secure hydrogen molecules and the buildout of its refueling infrastructure, as the company expands its H2 station footprint to 60 by 2026 (4 today, all in California)."

Nikola ( NKLA ) was down 12.14% at 12:05 p.m. on Friday and swapped hands earlier in the session at a new all-time low of $1.15.

The Seeking Alpha Quant Rating on NKLA flipped to Sell from Hold on February 16 before shares fell by more than 50%.

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