Shares of Nikola Corp hit a record low on Friday after the electric-truck maker said it plans to sell shares and raise $100 million, amid high production costs.
A member of the media stands behind a hydrogen-powered Artic truck at the booth of U.S. truckmaker Nikola at the IAA Transportation fair, which will open its doors to the public on September 20, 2022, in Hanover, Germany, September 19, 2022. REUTERS/Fabian Bimmerhit a record low on Friday after the electric-truck maker said it plans to sell shares and raise $100 million, amid high production costs.
Nikola said late Thursday it will sell about 29.9 million shares in public offering and 59.4 million shares to hedge fund Antara Capital L.P., an existing holder of the company's convertible bonds. Wall Street was concerned after Nikola's offering price of $1.12 represented a 20% discount over its last close of $1.40 on Thursday.
Shares of the EV startup, based in Phoenix, Arizona, were down as much as 17.8% at $1.15 in early trading, its biggest one-day decline since January 2021."Despite the $100 million cash injection, management still has a lot of work to do to balance cash burn against its existing cash," said BTIG analyst Gregory Lewis, and downgraded the stock to "neutral" from "buy".
the factors hitting demand for its battery-powered trucks were not expected to ease in the near future, after it delivered fewer than a sixth of the battery-powered trucks it made in the fourth quarter.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nikola announces a $100 million stock offeringNikola plans to raise $100 million via a secondary offering, and possibly a private investment, if needed.
Read more »
Nikola shares plummet to record low on $100M stock-sale planAnalysts downgraded the stock to “neutral” from “buy.”
Read more »
Hong Kong fund plans to raise $100 million for crypto investmentThe fund will “embrace Hong Kong and its policies” but also intends to be present in Australia and Singapore, as well as in Europe and the US.
Read more »
The Ooni Karu 12 Pizza Oven Is Lightweight and Versatile—and It’s Now $100 OffThis multi–fuel pizza oven is lightweight, portable, and can hit 950ºF in just 15 minutes for the perfect Neapolitan-style char.
Read more »
Preorder the new Samsung Galaxy A54 5G for just $100 after gifts and discountsSamsung offers generous trade-ins and accessory discounts in the preorder period
Read more »
The Best Summer Dresses Are Already On Amazon For Under $100Here's a roundup of cheap and cheerful summer sundresses you can score on Amazon.
Read more »