What's Going On With Nikola Shares Today?
Portfolio Pulse from Nabaparna Bhattacharya
Nikola Corporation (NASDAQ:NKLA) shares are gaining in the premarket session after a significant 31.5% dip the previous day. The company announced a 1-for-30 reverse stock split effective June 24, aiming to increase its stock price and prevent delisting. However, challenges persist, including a multi-billion dollar lawsuit from founder Trevor Milton and removal from the Russell 3000 Index. Nikola's Q1 results showed a decline in sales and production compared to the previous year.
June 21, 2024 | 12:19 pm
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Nikola Corporation announced a 1-for-30 reverse stock split to increase its stock price and prevent delisting. Despite this, the company faces a lawsuit from founder Trevor Milton and removal from the Russell 3000 Index. Q1 results showed a decline in sales and production.
The reverse stock split may provide a short-term boost to the stock price by increasing the price per share and preventing delisting. However, the lawsuit from the founder and removal from the Russell 3000 Index are significant negative factors. The mixed Q1 results add to the uncertainty.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100