Written by Cláudio Afonso | LinkedIn | X
Shares of the electric-vehicle startup Nikola plummeted 13 percent on early Thursday after announcing that its Board of Directors has approved a 1-for-30 reverse stock split, effective next Monday, June 24.
The decision follows the approval by stockholders at the company’s 2024 annual meeting held earlier this month. Earlier this week, Nikola shares hit a new all-time low at $0.45 per share.
In conjunction with the reverse stock split, the number of authorized shares of Nikola’s common stock will be reduced from 1.6 billion to 1 billion. This move aims to adjust the stock structure proportionally, impacting the number of shares under equity awards, warrants, equity incentive plans, and convertible notes, without altering the par value of the common stock.
The company held its Annual Meeting earlier this month, and shareholders elected all the Directors and approved all proposals including a reverse stock split that will allow the share price to comply with Nasdaq requirement of trading above $1.
DA Davidson analyst Michael Shlisky issued a new research note last week reiterating the firm’s rating on Nikola shares while reaffirming the $1 price target implying an upside potential of 104 percent.
By the end of last year, Nikola‘s institutional shareholders were holding about 200 million shares although the number has more than doubled to 450 million shares in May, according to data from Fintel.
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In a recent interview, Nikola chief executive Steve Girsky comented on the enhancements in the second generation of the manufacturer battery electric vehicle (BEV) trucks while teasing future aerodynamic designs.
Girsky mentioned that while the current focus is on the cab-over design, Nikola is considering future aerodynamic designs as battery electric and fuel cell electric vehicles become more prevalent.
The company’s founder and former CEO Trevor Milton , announced on Saturday on social media that he has filed a multibillion-dollar derivative and malpractice lawsuit.
Milton, who stepped down as chairman in 2020 amid allegations of fraud, asserted in his post that the controversial video showing a Nikola truck rolling down a hill—purportedly to falsely demonstrate its functionality—was orchestrated by Worthen.
Written by Cláudio Afonso | LinkedIn | X
