Written by Cláudio Afonso | LinkedIn | X
Electric vehicle companies Nikola and Workhorse will be removed from the Russell 3000 Index, according to the official preliminary list of additions and deletions posted by FTSE Russell.
The Russell 3000 Index measures the performance of the 3,000 largest publicly traded companies in the U.S. by market capitalization.
Inclusion in the index enhances a company’s visibility and can attract more investors, as many mutual funds and exchange-traded funds (ETFs) track the Russell 3000.
The annual Russell US Indexes reconstitution ranks the largest U.S. stocks by market capitalization as of the last day of April.
Joining the index this year are several firms, including electric vehicle startup Canoo, as well as Aemetis, American Superconductor, Arhaus, and Blend Labs.
A few minutes after the market close on Wednesday, Nikola announced on X that the shareholders approved all proposals including the controversial reverse stock split. As of the time of writing, the stock price of the manufacturer is trading 6 percent lower following the news.
Workhorse recently reported its first-quarter earnings, revealing $1.3 million in sales, down from $1.7 million in the same period last year. The company attributed the sales decline primarily to lower W4 CC vehicle sales. Workhorse’s net loss for the quarter was $29.2 million, compared to $25.0 million in the same period last year.
As of March 31, 2024, Workhorse reported $6.7 million in cash and cash equivalents, $1.8 million in accounts receivable, $49.9 million in net inventory, and $14.2 million in accounts payable.
The annual reconstitution of the Russell US Indexes is a significant event for publicly traded companies, as inclusion or exclusion can influence stock performance due to the buying and selling actions of index funds and other institutional investors.
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.
Written by Cláudio Afonso | LinkedIn | X
