Why Nikola Shares Are Tumbling After Hours

Nikola Corp NKLA shares are trading lower after the close on Thursday after the company announced an offering.

What Happened: Nikola commenced a public offering of up to $100 million worth of its common stock. 

The company also entered into a forward stock purchase agreement with an investor, in which the investor agreed to purchase up to $100 million of common stock from Nikola in a concurrent registered direct offering at the public offering price.

Nikola said it plans to use the net proceeds for working capital and other general corporate purposes. 

The news comes a day after the company said orders for its Nikola Tre had grown to 100. Deliveries of the class 8 fuel cell trucks are expected to begin in the fourth quarter.

See Also: Nikola Names VP Anastasiya "Stasy" Pasterick As New Finance Chief Effective April 7, Succeeding Kim J. Brady

NKLA Price Action: Nikola has a 52-week high of $11.86 and a 52-week low of $1.35, according to Benzinga Pro.

The stock was down 8.64% after hours at $1.28 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nikola.