PHOENIX—Dirk Ole Hoefelmann, President of Energy at Nikola Corp (NASDAQ:NKLA), recently sold 546 shares of the company's common stock. The shares were sold on December 4 at an average price of $1.6821 per share, resulting in a total transaction value of $918. The transaction comes as Nikola's stock has declined over 93% year-to-date, with the company's market capitalization now at approximately $98 million. According to InvestingPro analysis, the stock is currently trading below its Fair Value.
Following this transaction, Hoefelmann holds 49,597 shares in the company. According to the filing, this sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs) and was not a discretionary trade. InvestingPro data reveals the stock's RSI suggests oversold territory, with 18 additional real-time insights available to subscribers.
In other recent news, Nikola Corporation has experienced significant developments. The company recently announced an update to its equity distribution agreement with Citigroup (NYSE:C) Global Markets Inc., allowing for sales to proceed regardless of the active trading status of Nikola's common stock. Nikola also made amendments to its outstanding convertible notes, setting a reduced conversion price of $3.116, contingent on raising at least $65 million from the sale of its common stock.
Additionally, Nikola secured a waiver related to its Series B-1 Senior Convertible Notes due 2025, providing flexibility for the specified equity raise. Financially, Nikola reported a gross revenue of $33 million for the third quarter, up from the previous quarter's $31 million. However, due to a higher-than-expected cash burn rate, TD Cowen maintained its Hold rating on Nikola but reduced the stock price target from $10.00 to $4.00.
Despite the financial challenges, Nikola achieved record sales of 88 hydrogen fuel cell electric trucks and saw a nearly 350% surge in hydrogen dispensing at its stations year-over-year. Analysts at TD Cowen emphasized the importance of securing additional funding or forming strategic partnerships for the company's future. These are recent developments that highlight both achievements and challenges for Nikola Corporation.
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