What's Going On With Nikola Stock Friday?

Nikola Corp NKLA won shareholder approval to boost the authorized number of shares of common stock.

CEO Michael Lohscheller said, "This positive outcome, particularly with respect to Proposal 2, was critical for continued growth and success as we move forward with our strategic priorities, including autonomous technologies and software, our HYLA hydrogen ecosystem, and the recent launch of the Nikola hydrogen fuel cell electric vehicle."

Also Read: Nikola Founder Opposes Fresh Capital Raise

Nikola will report its second-quarter results before the U.S. markets open on August 4. The Street expects revenue of $15.43 million and an EPS loss of $(0.22).

The company's founder and former chairman and CEO, Trevor Milton, opposed the proposal through social media posts, CNBC reports.

Milton previously tried to block a similar share-increase proposal in 2022, which eventually passed after multiple adjournments.

A change in Delaware law on August 1 reduced the approval requirement for the proposal from 50% to a simple majority of shares voted.

Nikola sought approval for the proposal in its June and July annual meetings, but the total number of shares voted fell short of the previous 50% threshold.

Now, Nikola can increase its total outstanding shares from 800 million to 1.6 billion, allowing it to raise cash by issuing new shares as needed.

The company has started producing the hydrogen fuel cell version of its Tre electric semi-truck and aims to make its first deliveries later this year. It currently has over 200 orders for the new truck.

Nikola will likely use the approval to issue new shares to raise funds for the new truck's production ramp and expand its hydrogen refueling network in the U.S. and Canada.

Price Action: NKLA shares traded higher by 1.91% at $3.46 in the premarket on the last check Friday.

Photo via Wikimedia Commons

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