Why Nikola Stock Is Tumbling Monday

Nikola Corp NKLA shares are trading lower Monday after the company announced an agreement to sell up to $325 million in aggregate principle amount of senior convertible notes.

What Happened: In a new regulatory filing, Nikola said it plans to offer up to $325 million of senior convertible notes in a registered direct offering. The company plans to close on approximately $125 million on Monday, so additional closings will not exceed $200 million. 

Nikola said it expects to generate net proceeds of approximately $124.5 million. 

Nikola shares are down nearly 10% year-to-date and more than 64% over the last year. The stock has seen increased selling pressure over the last month after a fire near its headquarters ultimately led to a voluntary recall of more than 200 vehicles. The company said it was placing a temporary hold on new BEV sales until the issues were resolved. 

See Also: Tesla's Employee Data Leak, Full Self-Driving Problem and Using Siri for Car Commands: Top Stories For Elon Musk Led EV Company Today

NKLA Price Action: Nikola shares were down 13.8% at $1.69 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nikola.