Nikola Stock Is Plunging. Could It Be Delisted?

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A Nikola Tre battery-electric heavy duty truck

Andreas Gebert/Bloomberg

Stock in electric-vehicle/fuel-cell start-up


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

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


(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.


(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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