Nikola Stock Is Tanking Thursday: What's Going On?

Nikola Corp NKLA shares are trading lower Thursday after the company announced a series of proposed offerings. 

What To Know: 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. 

The company expects to grant the underwriters of the common stock offering an 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 plans to use the net proceeds from the common stock offering for working capital and other general corporate purposes. The company also expects 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.

The news comes after Nikola raised $250 million in the third quarter, increasing its unrestricted cash position by $136.2 million. In the company's most recent earnings release, Nikola said it had tripled its unrestricted cash position since the first quarter.

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NKLA Price Action: Nikola shares have faced heavy selling pressure in 2023 and are down more than 54% since the start of the year. The stock was down 20.6% at 78 cents at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nikola.