NKLA Stock Forecast: Nikola Corporation gains before a major investor drops out
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- NASDAQ: NKLA gained 3.41% as the broader markets finished the trading session strong.
- Nikola strategic partner Hanwa dumped half of its shares according to an SEC filing.
- Nikola plans to raise $100 million in capital to fund the completion of its production facility in Arizona.
NASDAQ: NKLA has continued its erratic performance into 2021 and even without founder and former CEO Trevor Milton, the company just cannot seem to find its way. On Wednesday the beleaguered electric truck stock took advantage of the bullish end to the trading day and added 3.41% before the closing bell. Shares are now down a staggering 40% since Nikola hit $28.58 during the Reddit meme stock short squeeze in late January. Nikola is trading well below its 50-day and 200-day moving averages, and continues to trend back down towards the NAV price of $10.00 before its SPAC IPO merger.
Stay up to speed with hot stocks' news!
Another bearish announcement came after hours on Wednesday as a crucial strategic partner parted with half of its stake in Nikola. Hanwa, a large business conglomerate based out of South Korea, reportedly sold off 11 million shares for an estimated value of $180 million. It is the second major stakeholder that has parted ways with Nikola as fuel cell supplier Robert Bosch GmbH, more commonly known as Bosch, also sold off 4 million shares in December of 2020. This also follows months of posturing between Nikola and General Motors (NYSE:GM), which seriously diluted the partnership after Nikola was struck with allegations of fraud.
NKLA Stock price prediction
Nikola itself is selling $100 million of its shares to raise further capital for its new production facility in Arizona. The stock plummeted on the news during Tuesday’s trading session, even though Nikola announced plans to develop delivery trucks for Anheuser-Busch (NYSE:BUD) as well as continuing with its BEV truck development in Germany.
- NASDAQ: NKLA gained 3.41% as the broader markets finished the trading session strong.
- Nikola strategic partner Hanwa dumped half of its shares according to an SEC filing.
- Nikola plans to raise $100 million in capital to fund the completion of its production facility in Arizona.
NASDAQ: NKLA has continued its erratic performance into 2021 and even without founder and former CEO Trevor Milton, the company just cannot seem to find its way. On Wednesday the beleaguered electric truck stock took advantage of the bullish end to the trading day and added 3.41% before the closing bell. Shares are now down a staggering 40% since Nikola hit $28.58 during the Reddit meme stock short squeeze in late January. Nikola is trading well below its 50-day and 200-day moving averages, and continues to trend back down towards the NAV price of $10.00 before its SPAC IPO merger.
Stay up to speed with hot stocks' news!
Another bearish announcement came after hours on Wednesday as a crucial strategic partner parted with half of its stake in Nikola. Hanwa, a large business conglomerate based out of South Korea, reportedly sold off 11 million shares for an estimated value of $180 million. It is the second major stakeholder that has parted ways with Nikola as fuel cell supplier Robert Bosch GmbH, more commonly known as Bosch, also sold off 4 million shares in December of 2020. This also follows months of posturing between Nikola and General Motors (NYSE:GM), which seriously diluted the partnership after Nikola was struck with allegations of fraud.
NKLA Stock price prediction
Nikola itself is selling $100 million of its shares to raise further capital for its new production facility in Arizona. The stock plummeted on the news during Tuesday’s trading session, even though Nikola announced plans to develop delivery trucks for Anheuser-Busch (NYSE:BUD) as well as continuing with its BEV truck development in Germany.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.