Nikola (NKLA), once a top stock in the early months of the pandemic, is in danger of being delisted from the Nasdaq (^IXIC). Shares of the battery and hydrogen-powered electric truck maker fell 20% Thursday to close at an all-time low of 62 cents a share.
The company said it received a risk notification letter from Nasdaq noting that Nikola “does not meet the minimum bid price requirements.” Shares closed below $1 a share for more than 30 consecutive business days.
Nikola has until November 20, 2023 to restore compliance. To qualify, the company’s stock must have closed at least $1.00 for at least 10 consecutive business days.
The Phoenix, Arizona-based startup has struggled to gain a foothold in recent years amid higher interest rates and challenges.
Nikola went public via a SPAC in June 2020. Shortly thereafter, the stock hit an all-time high of more than $65 per share as investors became excited about the electric vehicle industry and announced a partnership with General Motors (GM).
That deal was later watered down against Nikola and its founder Trevor Milton following a scathing short seller report by Hindenburg Research in September 2020.
The company initially rejected Hindenburg’s claims. Later that month, Milton resigned as chief executive officer.
In 2021, the company said in an internal review that Nikola and Milton had made some partially or fully inaccurate statements.
UKRAINE – 04/05/2023: In this photo illustration a Nikola Corporation logo is seen on a smartphone screen. (Photo illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
Higher interest rates and a tighter credit market have made financing more difficult for capital-intensive startups.
In late March, Nikola announced a $100 million common stock offering at $1.12 per share. The stock fell as much as 18% on the news. Nikola said it intends to use the net proceeds from the public offering for working capital and other general corporate purposes.
In April, Nikola announced changes to the board. There were also senior management changes earlier in the year, including the resignation of CFO Kim Brady.
The story goes on
Earlier this year, the startup celebrated the milestone of selling 100 Class 8 Nikola Tre hydrogen fuel cell electric vehicles (FCEVs). In early May, the company announced an order from AJR Trucking for 50 FCEVs.
Year-to-date, the stock is down more than 72%.
Ines is Senior Economic Reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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