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Why is Nikola Corp (NKLA) Stock down?

We've noticed a 7.05% decline in Nikola Corp (NKLA) stock during the 2024-07-09 trading session. While this could be attributed to normal volatility or various internal and external factors, please be aware that we are actively monitoring the situation, and we'll provide timely updates as soon as possible!
11 Apr, 2024:

Nikola Corp (NKLA) stock plummeted by 26.73% due to emerging boardroom conflicts and concerns raised by analysts regarding the company's growth prospects.

  • Boardroom Battle: The stock plummeted following the filing of a proxy statement by the company chairman, which included a letter to shareholders highlighting a brewing battle for seats on the board of directors. The letter revealed a contentious situation with founder and former chairman Trevor Milton, who is seeking to regain decision-making abilities at the company. The current chairman, Steven Shindler, emphasized that Nikola does not endorse Milton's nominees, citing their lack of public company experience and expertise in the business.
  • Analyst Concerns: The stock decline also followed a recent analyst report by Scott Group from Wolfe Research, which outlined several hurdles that could impact Nikola's successful growth. These hurdles include the need to build infrastructure for its hydrogen fuel cell trucks, sparse charging infrastructure, and high hydrogen fuel costs, which could hinder customer engagement with the new heavy truck technology.
03 Apr, 2024:

Nikola Stock (NKLA) plummeted by 8.40% due to a combination of factors. Despite its recent gains of over 30% since early March, the stock faced a sharp decline, with shares falling as much as 16.5% on Tuesday morning before settling at a 8.40% decrease. While the broader electric vehicle (EV) sector also experienced a downturn, a fresh lawsuit involving the company's former chairman, Trevor Milton, likely contributed to Nikola's stock decline.

  • EV Industry Concerns and Tesla's Impact: The broader EV market faced concerns following Tesla's disappointing first-quarter delivery figures, which showed an 8.5% year-over-year decline and missed analyst estimates. While Tesla and Nikola compete in the electric truck sector, Nikola has shifted its focus more towards hydrogen fuel cell vehicles. Despite this shift, Tesla's performance has raised concerns among investors about the overall demand for EVs.
  • Legal Conflict with Trevor Milton: In a recent Securities and Exchange Commission (SEC) filing, Nikola disclosed its ongoing legal conflict with its founder and former chairman, Trevor Milton, who was convicted last year on federal charges of securities fraud and wire fraud. Despite this conviction, Milton is still attempting to exert control over Nikola. The filing revealed that Nikola's agreement to sell its Badger electric utility vehicle and powersports-related assets has been violated by the buyer, EMBR, who has teamed up with Milton. This legal dispute has raised concerns among investors about Nikola's use of capital and potential distractions from its core business objectives.
  • Investor Sentiment and Future Outlook: Investors are wary of Nikola's involvement in another lawsuit, especially given the uncertainties surrounding EV demand. The combination of legal conflicts and market uncertainties has led to a decline in investor confidence, contributing to the stock's recent downturn.
18 Dec, 2023:

Shares of Nikola Corp (NKLA) dropped by 9.62% from $0.9072 to $0.8199 in the trading on Monday, December 18, 2023. The reason why NKLA down today is due to the news of the company's founder, Trevor Milton, being sentenced to a four-year prison term for fraudulent activities related to defrauding investors. The stock has endured a challenging year, with a 46% decrease in its value since the beginning of the year, and it now stands at a staggering 99% below its all-time high.

  • Founder's Legal Troubles: Trevor Milton's legal troubles revolve around allegations that he deliberately misled investors regarding Nikola's electric vehicle development and its overall business operations. These actions occurred during his tenure as the company's CEO, and the recent court ruling has confirmed his conviction.
  • Investor Caution: Despite the recent decline in Nikola's stock price, investors should exercise caution. While short-term rebounds in the stock's value are possible, the company's long-term prospects remain uncertain. Nikola's stock continues to trade at a high valuation, approximately 21 times this year's expected sales. This valuation heavily relies on growth, which makes it a risky investment, considering the company's history of significant losses and controversies.
  • Uncertain Future: Nikola's trajectory as a company is still unclear, and there are lingering doubts about its ability to succeed in the long term. Investors who decide to purchase the stock at its current low levels may still face substantial losses, given the company's tumultuous history and uncertain prospects in the electric vehicle industry.
07 Dec, 2023:

Nikola Corp Stock (NKLA) dropped by 23.39% from $0.9824 to $0.7526 in the trading on Thursday December 07, 2023. The reason why NKLA stock down today is due to the announcement of share offering.

  • Nikola's seeking to raise more money by issuing $100 million in new shares and $200 million in so-called green convertible senior notes due in 2026. Current shareholders will own less of the company as a result of the capital raise just announced. And it comes after Nikola already diluted shareholders in the third quarter through other fundraising moves.
  • Nikola says the funds will be used for working capital and other business needs. Those needs will surely be focused on the recent launch and needed production ramp for Nikola's hydrogen fuel cell-powered trucks. The company will still make battery-electric models, but it has been prioritizing its fuel-cell electric vehicles (FCEVs).
20 Nov, 2023:

Nikola Corp Stock (NKLA) dropped by 5.08% from $1.04 to $0.9872 in the trading on Monday November 20, 2023. The reasons why NKLA stock down today is due to the leadership resignation. CFO Stasy Pasterick departs after six months, marking the third key exit since August. CEO and President of Energy had left earlier in August. Nikola aims to swiftly replace Pasterick, who is set to become the first CFO at Universal Hydrogen, a startup focused on zero-emission hydrogen fuel for regional airlines, having raised over $100 million.

02 Oct, 2023:

Nikola Corporation Stock (NKLA) dropped by 10.19% from $1.57 to $1.41 in the trading on Monday October 2, 2023. The reasons why stock NKLA is down today includes:

  • Higher interest rates: As the cost of financing goes higher, it makes it harder to finance projects like utility-scale hydrogen assets or new hydrogen-powered trucks, so it's not surprising NKLA stock is down.
  • Financial problem: The company is running out of money and worsening financials mean the company's uphill battle may be impossible. Down days for financially solid companies can mean devastating days for stocks like Nikola.
28 Aug, 2023:

Nikola Corporation (NKLA) saw a 5.34% drop to $1.24 following its announcement of a registered direct offering for senior convertible notes, potentially amounting to $325 million, with expected net proceeds around $124.5 million.

https://markets.businessinsider.com/news/stocks/nikola-to-offer-325-mln-in-senior-convertible-notes-1032569445

23 Aug, 2023:

Nikola Corporation's stock dropped by 7.04% following its cautionary statement about potentially missing its annual delivery goals due to a series of recent battery-related events.

https://www.msn.com/en-us/money/other/nikola-warns-2023-ev-deliveries-may-fall-short-of-target/ar-AA1fEYN9

21 Aug, 2023:

Nikola Corp's stock dropped 22.96% after unveiling a new agreement to sell convertible bonds, raising concerns of potential share dilution. Additionally, the recall of around 200 electric trucks due to a safety problem contributed to the decline.

https://www.fool.com/investing/2023/08/21/why-nikola-shares-plunged-monday/

14 Aug, 2023:

Nikola Corporation (NKLA) fell 8.72% to $1.77. In response to a recent fire probe revealing the cause of fires, Nikola decided to halt sales and voluntarily recall 209 Class 8 battery-electric trucks.

https://www.benzinga.com/news/23/08/33839424/why-22nd-century-group-are-trading-lower-by-around-20-here-are-other-stocks-moving-in-mondays-mid-da

04 Aug, 2023:

Nikola's stock dropped 26.36% after the CEO's resignation was announced. The company reported declining sales, widening losses, and approved a sharecount increase after a previous proposal was rejected by shareholders.

https://finance.yahoo.com/m/fc3c3581-f0ae-362c-af2b-2cb6ca4a8058/nikola-stock-falls-as-ceo-to.html

25 Jul, 2023:

Nikola Corporation (NKLA) shares are down more than 14% on Tuesday. Investors are pumping the brakes on the electric truck manufacturer after news that one of its vehicles caught fire over the weekend.

https://www.benzinga.com/news/23/07/33372062/whats-going-on-with-nikola-stock-today

10 Apr, 2023:

On Monday, shares of the company declined by almost 2.5% after Evercore ISI reaffirmed its "in line" rating. Additionally, the firm reduced its price target by 50% to $1, citing an excessive number of headwinds faced by the company.

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