What's Going On With Nikola (NKLA) Shares

Nikola Corp NKLA shares are trading higher by 13.64% to $1.50 Wednesday morning morning on heavy volume. Shares are trading higher Wednesday on upward momentum after the company recently provided an update on its business optimization efforts.

What Happened?

Nikola announced on Friday its intention to optimize its business operations by implementing measures to reduce cash expenditure and enhance efficiency.

By 2024, Nikola aims to lower its annual cash usage to below $400 million. Additionally, Nikola plans to restructure its workforce, eliminating non-essential expenses and providing support for its strategic priorities. This will involve a reduction in headcount, resulting in an anticipated annual cash savings exceeding $50 million.

The EV maker also gained last week after shareholders earlier this month rejected the company's proposal to issue more stock shares. Nikola is also higher by some 43% over the trailing five sessions as the stock trends across social media platforms.

What Else Is Going On With Nikola?

NKLA shareholders earlier this month rejected the company's proposal to issue more stock shares. The stock is up on continued momentum after the company announced that it would adjourn and reconvene its annual meeting of stockholders on July 6, 2023.

Nikola seeks to extend the voting period for Proposal 2, enabling the company to expand its authorized shares and enhance flexibility in fostering future business growth and development.

With a new proposed law in Delaware reducing the approval threshold to a majority of voting shares, Nikola currently has enough votes to secure approval for Proposal 2. The pending legislation is anticipated to become effective on August 1...Read More

According to data from Benzinga Pro, NKLA has a 52-week high of $8.97 and a 52-week low of $0.52.