Nikola Stock Is Tumbling: What's Going On?

Nikola Corp NKLA shares are trading lower in Wednesday's after-hours session after the company announced a series of proposed offerings. 

What Happened: After the close on Wednesday, Nikola said it intends to offer $100 million of common stock and $200 million of green convertible senior notes due 2026 in separate public offerings. 

Nikola said it also expects to grant the underwriters of the common stock offering a 30-day option to purchase up to an additional $15 million of common stock and the underwriters of the notes offering the option to purchase up to an additional $30 million of the notes. 

Nikola wants to use the net proceeds from the common stock offering for working capital and other general corporate purposes. The company plans to allocate an amount equal to the net proceeds from the notes offering to finance, refinance or make direct investments in one or more current or future eligible projects.

See Also: ChargePoint Faced 'Challenging Macroeconomic Conditions And Execution Challenges' In Q3: What You Need To Know

NKLA Price Action: Nikola shares are down more than 54% since the start of the year. The stock was down 15.51% after hours at 98 cents at the time of publication, according to Benzinga Pro.

Photo: Courtesy of Nikola