Nikola Stock Is Up 8%: What's Going On?

Nikola Corp NKLA shares are trading higher by 8.2% to $1.32 Friday morning, rebounding following recent weakness. The stock is otherwise down 21.6% over the trailing five sessions after the company this week announced a registered direct offering of senior convertible notes worth up to $325 million. Nikola expects net proceeds of around $124.5 million.

The company also indicated in a recent regulatory filing that these stockholders may resell the mentioned shares, which are derived from note conversions. Nikola itself will not receive any proceeds from these sales.

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Nikola shares are also down roughly 35% over the trailing month, with much of the selling pressure coming after a nearby fire led to the voluntary recall of over 200 vehicles, prompting a temporary halt on new BEV sales as the issues are addressed.

According to data from Benzinga Pro, NKLA has a 52-week high of $6.35 and a 52-week low of $0.52.