![NVIDIA H20 demand stronger than expected: Morgan Stanley](https://i-invdn-com.investing.com/news/LYNXMPEA60168_S.jpg)
Please try another search
Benzinga - by Surbhi Jain, .
Nikola Corp (NASDAQ:NKLA) shareholders are in for a wild ride. Despite the company's 6% surge following the approval of a controversial reverse stock split on Wednesday, it faces exclusion from the Russell 3000 Index, a major blow to investor visibility and interest.
We 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. pic.twitter.com/LoSJsod59n— Nikola Corporation (@nikolamotor) June 5, 2024
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.
Also Read: Nikola’s Stock Hits All-Time Low: What’s Going On?
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.
Read Next: EV Maker Nio’s Q1 Deliveries Fall 40% From Q4, Stock Slides
Photo: VanderWolf Images/Shutterstock.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.