What's Going On With Nikola (NKLA) Shares
Portfolio Pulse from Henry Khederian
Nikola Corp's shares are trading lower by 8.3% following the announcement of a registered direct offering of senior convertible notes worth up to $325 million. The company expects net proceeds of around $124.5 million. The stock has been under pressure after a nearby fire led to the voluntary recall of over 200 vehicles, causing a temporary halt on new BEV sales.
August 24, 2023 | 4:45 pm
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Nikola Corp's shares are trading lower due to the announcement of a convertible notes offering and a vehicle recall. The stock is expected to remain under pressure in the short term.
The announcement of a convertible notes offering usually leads to a dilution of shares, which can put downward pressure on the stock price. Additionally, the vehicle recall due to a fire incident has negatively impacted the company's reputation and sales, further pressuring the stock.
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