EV - Nikola Stock up as Reports Emerge on Layoffs to the Romeo Power Personnel After the Acquisition
Business Insider says that Nikola ( NASDAQ:NKLA ) is letting people go while it restructures Romeo Power to save money. According to a Friday claim from the site, 15% of Romeo Power’s entire staff has been let go by the electric-truck maker. According to the report, that percentage equals 45 workers. Friday’s premarket trading saw relatively little movement in Nikola stock ( NASDAQ:NKLA ).
In August, Nikola made a move to buy the battery company through an all-stock deal. They did this because they saw the benefits of vertical integration and domestic battery pack production. The takeover should strengthen Nikola’s supply network, the management of Nikola said. On October 13, the transaction was completed.
Nikola ( NASDAQ:NKLA ) is like Lordstown in that it can’t show growth even when good news comes out. After Romeo Power, a battery manufacturer, was acquired, the ailing company’s shares increased (NYSE:RMO). But they quickly lost steam after Nikola’s founder Trevor Milton was found guilty of securities and wire fraud by a jury. When a company’s former CEO deceives investors to boost share prices artificially, it’s difficult to have faith in that company.
Nikola Stock Forecast
Even though NKLA stock has been trying to recover since Milton’s conviction, it’s important to look at the situation as a whole. The stock price reached its highest point in June 2020, which was more than three months before Hindenburg Research released its devastat...
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