- 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.
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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.
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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.
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