Why Nikola Stock Crashed Monday
Shares of electric truck start-up Nikola (NASDAQ: NKLA) are taking a hit Monday after the company announced a new capital raise. As of 1:06 p.m. ET, shares were down 4.9%.
Nikola announced today that it received a $200 million investment from funds under advisement by institutional investor Antara Capital. The influx of capital from the sale of convertible notes will go toward "business expansion in the form of scaling truck manufacturing and tooling setup, accelerating the development of its hydrogen infrastructure," according to the company. But the capital comes at a cost for both Nikola and existing shareholders.
Source Fool.com
