More trouble for Nikola Motors, as its share price stumbles and it now faces the threat of delisting from the Nasdaq stock exchange for the second time in eight months.
The company received a delisting notice as its share price remained below $1 for over 30 consecutive business days, and recovery in the near term appears unlikely. If Nikola’s share price does not rise above the $1 threshold for 10 consecutive trading sessions within 180 days, it could face removal from the exchange. This situation puts the company in violation of the Nasdaq’s listing rules.
Nikola previously received a delisting notice in May last year, but its share price rebounded, reaching a high of $3.395 on 03 August 2023. However, as of the latest report, the share price is around $0.67. Delisting would potentially relegate Nikola’s shares to penny stocks, making them harder to trade.
The company confirmed the new delisting notice and has 180 calendar days to regain compliance. It may be eligible for an additional 180-day period to address the bid price requirement. Nikola highlighted its commitment to increasing shareholder value and expressed confidence in its mission of pioneering zero-emission solutions. The company mentioned its focus on hydrogen fuel cell electric trucks, battery-electric trucks, and Hydrogen infrastructure solutions.
To avoid delisting, one potential approach is a reverse stock split, consolidating existing shares into fewer, higher-priced shares. However, such actions are often viewed negatively by the market, as they may indicate challenges faced by the company. Despite Nikola reporting its first revenues from hydrogen truck sales and securing a deal to sell 50 fuel-cell vehicles to freight operator IMC, investor response has been tepid. The company is set to reveal its 2023 financial results on 22 February.