Why Nikola Stock Crashed 10% This Morning
Nikola Corporation (NASDAQ: NKLA) stock tumbled 10% in early trading Monday before recovering a bit. The fuel cell-powered truckmaker filed a form S-3 with the Securities and Exchange Commission (SEC) this morning, describing its plan to raise $500 million through issuances of new debt, convertible debt, and shares in the company.
Investors don't seem thrilled with the idea, however, and as of 10:10 a.m. ET, Nikola stock is still down 8.3%.
Nikola is starting small (ish). In an explanatory 8-K filing, the company described how it will begin with an $80 million sale of convertible notes, then sell up to $80 million more over the next 18 months if its investors consent.
Source Fool.com
