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Nikola Shares Plunge 14.46% After Hours – Company to Issue New Shares

Nikola truck
Simon Mugo

Shares of Nikola Corp (NASDAQ: NKLA) were down 14.46% during after-hours trading after the company filed an application to issue 23.9 million new shares.

According to the filing, the manufacturer of hydrogen-powered vehicles plans to issue the new stock in order to cover the exercise of a similar amount of public and private warrants issued during the VectoIQ initial public offer (IPO).

The filing also revealed that some of the company’s directors and top shareholders had cumulatively sold over 53.6 million shares recently, which spooked investors. The news led to over 3 million shares being offloaded during aftermarket trading adding to the firm’s initial 7% decline.

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Nikola Corp share price

Nasdaq chart of Nikola Corp share price 18072020

Nikola shares were down as much as 21.7% hitting a low of $38.0 after hours before recouping some of its losses to end the week at $41.78.

Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.