Why Nikola Shares Plunged Monday
Nikola's (NASDAQ: NKLA) stock price is still more than twice what it was three months ago, but it has tumbled from the recent peak hit in the first week of August, when it was up by more than 500% from its early June low. That slide continued Monday morning as the stock fell by more than 18%. As of 11:06 a.m. ET, shares of the electric truck maker remained down by about 18.3%.
Two items from new filings by Nikola were driving the stock lower as the trading week began. The company said it had entered into a new agreement with investors to sell as much as $325 million in convertible bonds. It expects to close the initial tranche, which will raise about $125 million for the company, on Monday. And as with any sale of convertible bonds, this one raises the possibility of share dilution down the road.
Source Fool.com
