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A Nikola Tre battery-electric heavy duty truck
Andreas Gebert/Bloomberg
Stock in electric-vehicle/fuel-cell start-up
Nikola
hit a new 52-week low on Thursday. There are reasons why.
For starters, Nikola (ticker: NKLA) received a delisting notice from the Nasdaq stock exchange, as the stock has traded below $1 for 30 consecutive days, which violates exchange rules. As of Thursday, Nikola stock has traded below $1 for 32 consecutive days. Nikola has 180 days to remedy the situation.
Shares are off 17.8% at 63 cents a piece in Thursday midday trading, while the
S&P 500
and
Nasdaq Composite
are up 0.6% and 1.5%, respectively.
“Appears to be a sign of the times,” says Battle Road Research analyst Ben Rose, adding
Lordstown Motors
(RIDE) and
TuSimple
(TSP) have received similar notices.
Rose rates Nikola stock at Sell without a price target. His rating means he expects the stock to underperform the market. Rose doesn’t cover the other stocks.
Many EV and transportation start-ups are struggling to raise cash to fund their business models.
Canoo
(GOEV) stock is below $1. So are
Hyzon Motors
(HYZN) shares along with a handful of others.
Lordstown stock is now trading at $3.88, after the company executed a 1-for-15 reverse stock split to get share prices above $1. Nikola might do something similar.
“The Nasdaq Notification Letter does not impact Nikola’s listing on Nasdaq at…
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