Nikola faces Nasdaq delisting after receiving a notice as the company struggled to maintain its minimum bid price
Per Reuters
Nikola was once one of the companies that tried to rival Tesla in the EV space as it aimed to focus on electric trucks. The company faced a delisting notice from Nasdaq as it struggled to meet requirements.
Specifically, Nikola struggled to meet Nasdaq's requirements regarding the minimum bid price. In 2022 alone, the company fell 78%.
As per the reasons why Nikola fell, some highlighted ones were production concerns and high battery material costs. As of press time, Nikola shares (NKLA) were down to just $0.56 after dropping 30.30% in the past month alone.
The company has been trying to raise cash, including the sale of equity. This came after shareholders voted to "increase the number of shares at its annual shareholder meeting."
Nikola wasn't the only EV company dealing with a notice from Nasdaq as Lordstown Motors Corp, an EV startup, received a similar notice just recently.
The solution of Lordstown Motors Corp for it to meet the exchange's minimum requirements was to place into effect a reverse stock split. This allowed the price of its stock (RIDE) to meet Nasdaq's rules.
In November, it was reported that Elon Musk lost $100 billion in 2022 alone as Tesla shares dropped to their lowest level in two years. Despite that, the billionaire, during that time, still retained his status as the richest man in the world with a net worth of $169.8 billion.
Musk's wealth peaked at $340 billion sometime in 2021. During that time, the billionaire's loss almost totaled the entirety of Jeff Bezos' net worth, which was $116 billion.
In February, it was also reported that Elon Musk donated $2 billion worth of Tesla shares to charity. Per an SEC filing, it was found that Musk donated 11.6 million shares from August to December.
See flow at unusualwhales.com/flow.
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