Nikola Corporation (NKLA)

[Donotunderstand]

stay

1. Yes - RS does NOT .... but history of other stocks says - its 5:! odds that the higher price attracts short sellers and boom the higher price is cut by 20-25% before you have time to type a message. RS suck for current holders - but if they need it - they need it. (MY hope is that as fiduciary they are setting things in place SHOULD they need it AND WANT IT)

2. They are setting new total authorized shares at 1B - down from 1.6B. But that is new shares. So in old shares they are asking for permission to issue up to say 5B shares if its a 1:5 RS --- that is crazy and scary and they will then have > 2X the shares available to dilute

So the RS does not dilute - but history of stocks that do that is - figure 20-25% loss within a week - on the new price (THAT would not happen IMO and with history - if they waited and WE got > $!) . Damage acceptable

So the ask for 1B new shares authorized -- wow that sucks. Now - if for example - they issue 300MM more shares and every penny is used to build out a new factory --- that could be good. But if they need say 400M to EXTEND Their NOW expected negative cash flow runway coverage - that sucks