Why Nikola Stock Is Plummeting Again Today
Shares of Nikola (NASDAQ: NKLA) are cratering again Thursday's trading. The electric vehicle company's share price was down roughly 21% as of 3:15 p.m. ET, according to data from S&P Global Market Intelligence.
Nikola sent out a message revealing that it was in danger of being delisted from the Nasdaq stock exchange. The EV company's share price has been trading below the $1 minimum level that is required to trade on the Nasdaq, and it will be taken off the exchange if its price does not climb above that level within 180 days of receiving the notice. Nikola also announced a new fundraising move, but it's one that's clearly not inspiring much investor confidence.
If Nikola were to be delisted from the Nasdaq exchange, it would make its stock less visible and harder to purchase for investors and result in it being removed from index-tracking funds. With the company carrying substantial debt, posting mounting losses, and its business generally in a dire position, selling new stock is one of the few ways it has to raise liquidity. The deadline to vote on the proposal is June 6.
Source Fool.com
