Nikola Corporation (NKLA)

[WeTheMarket]

The following Seeking Alpha article might explain the sharp drop in share price today.

Nikola: Dilution Continues Unabatedly - Sell
Oct. 17, 2023 8:17 AM
https://seekingalpha.com/article/4641247-nikola-stock-dilution-continues-unabatedly-sell

Summary
- In early August, amendments to Delaware General Corporation Law resulted in Nikola gaining shareholder approval for doubling the number of authorized shares to 1.6 billion.
- The company has wasted no time raising additional capital by aggressively selling new shares into the open market and issuing an aggregate of $165 million in convertible notes.
- Between August 1 and September 20, outstanding shares increased by more than 26% to approximately 985 million.
- Considering the recent BEV truck recall and resulting pause in deliveries, I would expect the company to reduce its full-year outlook for truck sales and revenues even further in the upcoming Q3 earnings release on November 2.
- Considering the likelihood of another guidance revision in early November as well as the massive overhang from convertible debt issuances and open market sales, investors should consider selling existing positions and moving on.