Why Nikola Stock Opened Sharply Lower

Shares of electric-semi start-up Nikola (NASDAQ: NKLA) were trading sharply lower on Monday morning. The company said in a regulatory filing late on Friday that warrants held by some of its early investors can now be exercised, effectively creating millions of new shares of Nikola stock.

As of 10:45 a.m. EDT, shares were down about 19.6%.

In a filing with the Securities and Exchange Commission after the U.S. markets closed on Friday, Nikola said that two series of warrants, which are securities that allow the holder to buy a share of common stock at a set price, can now be exercised. If all of the warrants are exercised, they will create nearly 24 million new shares of the company.

Source Fool.com