Why Nikola Stock Is Tumbling Monday
Portfolio Pulse from Adam Eckert
Nikola Corp (NASDAQ:NKLA) shares are trading lower after the company announced an agreement to sell up to $325 million in aggregate principle amount of senior convertible notes. The company plans to close on approximately $125 million on Monday, with additional closings not exceeding $200 million. Nikola expects to generate net proceeds of approximately $124.5 million. The stock has seen increased selling pressure over the last month after a fire near its headquarters led to a voluntary recall of more than 200 vehicles.
August 21, 2023 | 1:02 pm
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Nikola Corp's stock is trading lower after the company announced a sale of senior convertible notes and a vehicle recall following a fire at its headquarters.
The announcement of the sale of senior convertible notes is likely to dilute the value of existing shares, leading to a drop in the stock price. Additionally, the recent fire at the company's headquarters and the subsequent vehicle recall have negatively impacted the company's reputation and investor confidence, further pressuring the stock.
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