Why Nikola Stock Plunged More Than 30% This Week
Nikola (NASDAQ: NKLA) stock plunged this week and was down nearly 33% through 11:30 a.m. ET Friday despite a positive opening on the last trading day of the week, according to data provided by S&P Global Market Intelligence. Shares of the electric and fuel cell vehicle maker have now lost more than 50% value in August so far.
Nikola announced some major updates over the last few days, and investors aren't happy.
Earlier in the week, Nikola said it was selling $325 million in senior convertible notes -- debt instruments that can be converted into stock if the holders choose to do so. In other words, this fund-raising action makes further dilution of Nikola stock a possibility, which doesn't bode well for the holders of its existing shares.
Source Fool.com
