Nikola’s Plunging Inventory Worth Dangers Nasdaq Delisting
Nikola’s inventory value hasn’t been above $1 a share since April 11. (Bloomberg Information)
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Nikola Corp. tumbled Could 25 after Nasdaq Inc. notified the corporate that it isn’t in compliance with the minimal bid necessities to stay listed on the trade.
Shares of the electrical truck maker sank 20%, essentially the most since November 2020. The inventory is down 72% this 12 months as of the Could 25 shut, when it ended the session with a value of 62 cents.
Corporations on the trade that aren’t in a position to keep a minimal closing value of $1 per share for 30 consecutive enterprise days danger getting delisted. Nikola’s shares haven’t traded above $1 since April 11.
It’s the newest impediment for the zero-emission car startup that has confronted high-level govt departures lately and has exited Europe to deal with its house turf within the U.S. Earlier this month, the corporate additionally reported first-quarter earnings outcomes that have been barely worse than analysts had estimated.
JPMorgan analyst Invoice Peterson wrote in a notice earlier this month that whereas Nikola’s technique and new focus is smart, he’s skeptical on the ramp of enterprise and profitability profile in comparison with the corporate’s targets.
“In a difficult market setting, the corporate doesn’t have nice choices to boost capital at this stage, in our view,” Peterson wrote in a Could 9 notice.
The corporate mentioned within the submitting that Nasdaq’s notification doesn’t at the moment influence its itemizing on the trade. Nikola has 180 calendar days or till Nov. 20 to regain compliance with the itemizing rule, the place its inventory should shut at $1 minimal for not less than 10 consecutive enterprise days.
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