Electric Fuel Cell Vehicle Manufacturer Nikola's Offering Sends Stock Plunging

Electric Fuel Cell Vehicle Manufacturer Nikola's Offering Sends Stock Plunging

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of&nbsp;Nikola Corporation (NASDAQ: NKLA)&nbsp;traded sharply lower&nbsp;Friday afternoon&nbsp;as the SEC&nbsp;released news&nbsp;of Nikola offering 23,890,000 common shares.” data-reactid=”19″>Shares of Nikola Corporation (NASDAQ: NKLA) traded sharply lower Friday afternoon as the SEC released news of Nikola offering 23,890,000 common shares.

The company’s shares were already down almost 20% on the month before news of the offering hit. 

“This prospectus relates to the issuance by us of up to an aggregate of up to 23,890,000 shares of our common stock, $0.0001 par value per share (“Common Stock”), which consists of (i) up to 890,000 shares of Common Stock that are issuable upon the exercise of 890,000 warrants (the “Private Warrants”) originally issued in a private placement in connection with the initial public offering of VectoIQ and (ii) up to 23,000,000 shares of Common Stock that are issuable upon the exercise of 23,000,000 warrants (the “Public Warrants” and, together with the Private Warrants, the “Warrants”) originally issued in the initial public offering of VectoIQ. We will receive the proceeds from any exercise of any Warrants for cash.”

The CEO of the company has been releasing short videos of Nikola’s fuel cell-powered electric semi after investors and critics posted doubtful messages on Twitter.

Many are still wary of the upcoming Badger pickup truck offered by the company, as the vehicle has yet to be revealed. Nikola is accepting reservations for the truck, which is planned for a December unveiling. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Benzinga’s Take:&nbsp;While this move seems to have pummeled the stock in the after hours Friday, it may be Nikola’s best chance for a capital raise.” data-reactid=”25″>Benzinga’s Take: While this move seems to have pummeled the stock in the after hours Friday, it may be Nikola’s best chance for a capital raise.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With more information on the&nbsp;Tesla (NASDAQ: TSLA)&nbsp;Semi expected soon, interest in Nikola’s truck may fade.” data-reactid=”26″>With more information on the Tesla (NASDAQ: TSLA) Semi expected soon, interest in Nikola’s truck may fade.

The stock lost 7.02% in Friday’s session and another 14.46% in the after hours session to $41.78. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Photo courtesy of Nikola.” data-reactid=”28″>Photo courtesy of Nikola.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”29″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”33″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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