Written by Cláudio Afonso | LinkedIn | X
The CEO of the U.S. automaker Nikola Steve Girsky bought on Monday 1 million shares of the company at $0.54 per share, a new SEC Filing shows.
The move is understood as Nikola trying to send a message to shareholders, demonstrating their confidence in the stock aiming to seek support in the upcoming vote of Proposal 2.
The purchase was executed on May 20, at a price of $0.54 per share, bringing Girsky’s total beneficial ownership to 7,243,005 shares which are valued at $3.82 million based on the closing price of $0.527 per share on Monday.
Stockholders are have been encouraged to vote in favor of all five proposals, especially the reverse stock split in Proposal 2, which the company believes that will “have a positive impact by addressing potential delisting concerns and resetting its financial foundation”.
Nikola has recently warned that without Proposal 2 passing, it “may face delisting from Nasdaq and limitations in securing capital for our ongoing operations and business goals”.
Nikola has recently published its financial results for the first quarter of year reporting a decline in total revenues and a non-GAAP net loss per share of $0.09. The company produced 43 trucks in the first quarter of which 40 were shipped.
Earlier this month, TD Cowen analyst Jeffrey Osborne lowered the price target on Nikola shares by 50 percent to $0.50 while maintaining a Hold rating.
The analyst mentioned the higher-than-expected free cash flow burn as the manufacturer reported an adjusted EBITDA loss of $104 million and an operating loss of $145.4 million.
In the first quarter, Nikola wholesaled 40 FCEVs, surpassing the high-end of the guidance range. This marks the second quarter of serial production of FCEVs for Nikola, bringing the total wholesaled FCEVs to 75.
Nikola’s market expansion includes the opening of HYLA hydrogen modular refueling stations in Ontario and near the Port of Long Beach, California, as well as HYLA’s first hydrogen refueling station in Alberta, Canada.
Steve Girsky, CEO of Nikola, emphasized the company’s focus on execution, stating, “We continue to move forward rapidly and execute our plans. And please keep that in mind – we are in the execution phase, not the planning or concepting phase.”
Written by Cláudio Afonso | LinkedIn | X
