What's Going On With Nikola Stock?

Nikola Corp NKLA shares are trading lower by some 11% over the trailing week to $1.50. The company early Monday announced an Equity Distribution Agreement with BTIG to sell up to $100 million of common stock via an at-the-market offering, paying BTIG a 2.5% commission, with flexible termination terms.

Separately, Nikola raised $65 million by selling common stock to convertible senior PIK toggle noteholders. Between December 3, 2024, and January 31, 2025, a temporary conversion rate will allow issuing up to 48.1 million shares, exceeding post-January 2025 levels.

Nikola also said it repaid $39.4 million in Series B-1 Senior Convertible Notes due 2025, terminated related agreements and canceled certain hydrogen take-or-pay agreements, significantly reducing contingent liabilities.

Read Also: Chinese Stocks Sink On Weak Trade Data Amid Rush ‘To Get Goods To The US’ Before Tariffs

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 have lost 93.05% year to date. This compares to the average annual return of -82.7%, meaning the stock has underperformed 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 17.39, indicating oversold conditions.

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

NKLA has a 52-week high of $34.50 and a 52-week low of $1.40.