By Kuldip K. Ambastha
On Friday, March 31, 2023, the stock price of Nikola Corporation (NKLA), an American vehicle and energy solutions company, declined by -13.6% per share. The company announced plans to raise $100 million through a secondary stock offering, priced at $1.12 per share. The funds will be used for working capital and other general needs. The pricing of $1.12 per share implies that Nikola is struggling even more than investors already knew. The high point of the stock’s 52-week range is $10.88 per share, a sharp contrast with the $1.21 closing price on Friday.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in NKLA.
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