Why Nikola Stock Is Down Today

One other key investor correct bailed.

What took station

Shares of embattled electric truck start-up Nikola (NASDAQ:NKLA) had been Trading lower on Friday, after steel company Worthington Industries (NYSE:WOR) printed in a regulatory submitting that it had sold its entire stake in the corporate.

As of 1 p.m. EST, Nikola shares had been down about 6.2% from Thursday’s closing label.

So what

In an 8-Good ample submitting launched after the market closed on Thursday, Worthington stated that its subsidiary WI Ventures had sold its entire final stake in Nikola, correct over 7 million shares, for roughly $147 million. 

Worthington became an early investor in Nikola, providing the beginning-up with just a few of its initial funding support in 2015. This transaction became the third sale of its Nikola stock; in entire, it realized over $600 million, selling at a median of about $34 per fragment. 

A prototype Nikola Tre, a Class 7 electric semi, shown hauling a trailer.

Nikola is quiet hoping to acquire its electric semis to market over the subsequent couple of years. Image supply: Nikola.

To be determined, or no longer it is no longer the sale itself that drove Nikola’s label down on Friday — Worthington in actuality sold its stake on Wednesday — however the news that but one other company connected with Nikola had successfully severed ties. 

Now what

Nikola quiet has a connection to Worthington: Its CEO, Trace Russell, became formerly president and chief running officer of the steel maker. However clearly the managers of WI Ventures didn’t relate the corporate’s prospects warranted keeping its stake to any extent further, regardless of Russell’s leadership. 

Auto buyers hoping for an update from Russell can live up for Nikola’s fourth-quarter earnings tell, doubtless in mid-February.

John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>

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