What's Going On With EV-Maker Nikola's Stock?

Nikola Corporation NKLA shares are trading slightly higher Monday. The company announced shareholders approved all proposals at the Annual Meeting, including the reverse stock split.

The Details:

Though shareholders approved all proposals, the company still faces headwinds. On Friday, former Nikola CEO and founder, Trevor Milton, said on LinkedIn that he filed a multi-billion derivative lawsuit against Nikola’s present chief legal officer Britton Worthen, and its directors.

"Just filed a multi billion dollar derivative malpractice lawsuit against Nikola motor company's directors and chief legal officer Britton Worthen. GET READY!," Milton wrote.

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Should I Sell My NKLA Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Nikola NKLA have lost 33.67% year to date. This compares to the average annual return of -69.09%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Nikola stock currently has an RSI of 41.02, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

NKLA Price Action: According to Benzinga Pro, Nikola shares are up 2.26% at 50 cents at the time of publication Monday.

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