NKLA - Why Nikola Stock Is Sinking Again Today
2023-03-31 11:08:36 ET
Investors are clearly not happy with last night's news from electric heavy truck start-up Nikola (NASDAQ: NKLA) . It shouldn't have come as a surprise that the company needed to raise fresh capital. But the terms of the latest capital raise had shares plummeting as much as 16.4% Friday morning. As of 10:35 a.m. ET, the stock was trading down 11.8% for the day.
That's because Nikola announced the pricing of a new stock offering to raise $100 million in fresh capital as it ramps up production of both its battery- and hydrogen fuel cell-electric Class 8 heavy trucks. The offering at $1.12 per share is well below yesterday's closing price of $1.40 per share.
But what really has investors spooked is that the shares are being offered at about half what the stock was worth just one month ago. That makes the company look desperate for the capital.
For further details see:
Why Nikola Stock Is Sinking Again Today