Nikola's Stock Plunges as Investors React to New Offerings and Sales
Nikola Corp. faced a significant drop in its stock price as investors reacted negatively to the company's plans to sell 133.3 million new shares and issue $175 million in new debt. The new stock sale would increase the number of outstanding shares to nearly 1 billion, diluting the value of existing shareholders' holdings. Nikola already has a notice of going concern on file with the SEC, stating that it may run out of money within the next year. The company needs funds for a battery pack recall and to scale its hydrogen fuel cell electric truck business. Shares tumbled 22% following the announcement, with investors expressing little hope for Nikola's survival.
