Why Nikola Stock Is Down Today
Shares of electric-semi start-up Nikola (NASDAQ: NKLA) were trading lower on Thursday afternoon. The company's stock price has been sliding since it announced that warrants issued to some of its early investors must be exercised by Aug. 21, a plan that is expected to create millions of new shares of Nikola stock.
As of 2:15 p.m. EDT, Nikola's shares were down about 5.6% from Wednesday's closing price. The stock has fallen almost 40% since July 17, when Nikola revealed its plans to redeem the warrants in a regulatory filing.
Nikola's warrants each give the holder the right to buy one share of Nikola from the company at $11.50, well below the stock's current market price. These warrants were issued to early investors in VectoIQ Acquisition, the special-purpose acquisition company (or SPAC) that merged with Nikola in early June.
Source Fool.com
