All articles tagged with #shareholder dilution
Plug Power's stock rose after Clear Street upgraded its rating to Buy despite lowering its price target to $3, citing potential shareholder dilution and upcoming corporate decisions that could impact the stock. The broader market declined, and industry peers showed mixed results amid sector scrutiny.
Tesla's recent $29 billion stock award to CEO Elon Musk raises concerns about shareholder dilution, governance practices, and the company's high valuation relative to its financial performance, suggesting a shift from a risky to a potentially reckless investment.
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.