Shares of hydrogen and battery-electric truck maker Nikola (NASDAQ: NKLA) plunged this week and were trading 29% lower through 11:30 a.m. ET. Friday, according to data provided by S&P Global Market Intelligence.

The electric vehicle (EV) stock barely made it past the $1 mark earlier this month, but is now exchanging hands for just about $0.76 per share as of this writing. Nikola has consistently banked on stocks and convertible bonds to raise funds over the past couple of years or so. To investors' chagrin, the company's doing it -- yet again.

This week, Nikola said it will issue stock worth $100 million as well as raise another $200 million through convertible senior notes. While a stock sale dilutes the wealth of existing shareholders by default since their stake in the company falls, a convertible senior note is a double whammy. That's because senior convertible notes are a type of convertible bond where holders can opt to convert their notes into Nikola shares. If and when they do, it'll further dilute the wealth of existing Nikola shareholders.

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Source Fool.com