Why Nikola Continued to Rocket Higher Today
Nikola (NASDAQ: NKLA) shares are continuing their streak higher today. The battery- and hydrogen-electric heavy truck maker's stock has soared more than 70% in just the last week. Today the stock was higher by 14.9% at 10:35 a.m. ET.
The winning streak began in the days leading up to Nikola's annual shareholder meeting, but additional catalysts have contributed since then. The company adjourned its annual meeting one week ago with plans to reconvene on July 6. The agenda included a proposal to allow Nikola to increase the authorized number of shares in order to raise future capital.
The adjournment is meant to provide time to garner enough votes to pass the proposal. Nikola will need additional capital to survive, and investors are betting that the proposal will eventually pass. Seventy-seven percent of shares voted through June 6 were in favor of the proposal, so it seems the company really just needs to get more shares voted. But there are other positive catalysts helping keep the stock's momentum going today.
Source Fool.com
