Nikola Corp
Shareholders Approve Nikola Stock Split
On Wednesday, Nikola announced that shareholders approved all proposals at the Annual Meeting, including the much-debated stock split.
Nikola Corporation@nikolamotorWe are pleased to announce that at today's Annual Meeting, stockholders elected all of our Directors and approved all proposals. Thank you for your support in positioning Nikola to move forward. Full voting details will be filed with the SEC.
This move aims to stave off potential delisting from Nasdaq, enhancing the stock's marketability and addressing financial concerns.
Nikola Chairman Steve Shindler emphasized the importance of maintaining a share price that aligns with Russell 3000 companies to attract broader investor interest.
Removal From The Russell 3000 Index Looms
However, the company's removal from the Russell 3000 Index, as per FTSE Russell's preliminary list, casts a shadow over this victory.
The Russell 3000 Index, a key benchmark, measures the performance of the 3,000 largest publicly traded U.S. companies by market capitalization.
Inclusion in this index significantly boosts a company's visibility and can attract mutual funds and ETFs.
Recent Performance and Financials
Nikola's stock was down 3.5% at 52 cents at the time of publication Thursday, reflecting investor uncertainty.
The company's Q1 financial results revealed a decline in total revenues and a non-GAAP net loss per share of 9 cents. Nikola produced 43 trucks in Q1, with 40 shipped, and recently secured an order for 100 hydrogen fuel cell electric vehicles from AiLO Logistics, slated for delivery in 2025.
As Nikola navigates these turbulent waters, the approval of the stock split may provide some stability, but the removal from the Russell 3000 Index presents a significant challenge.
Investors will be watching closely as the company strives to realign its strategies and secure its place in the competitive EV market.
