Sometimes controversial electric vehicle (EV) maker Nikola (NASAQ:NKLA) is once again grabbing headlines, and yet again, it’s not for anything particularly pleasant. Indeed, the markets are abuzz as NKLA stock drops more than 15% today, reaching its lowest level in the past year.
Despite making relative progress in the sale of its battery-electric and hydrogen-fueled trucks, investors continue to dump the stock en masse. NKLA is down to less than $1 per share, raising concerns that the once-upon-a-time EV darling will be de-listed.
It seems investors have lost faith in the company since it announced a recent stock issuance at a substantial discount to its market price. Two weeks ago, Nikola announced it was issuing $100 million worth of common stock at just $1.12 per share. Unfortunately, that isn’t the only reason for today’s sell-off.
Nikola had previously experienced relatively little competition in the emissions-less semi-truck space. This week’s news changed that, and investors are clearly not happy.
NKLA Stock Sinks Following Departure of Three Board Members
Alongside an investor-concerning share issuance and the entrance of its biggest competitor into its market, Nikola is also dealing with something of a leadership crisis this week. The Arizona-based company truly cannot catch a break.
On Thursday, three Nikola board members announced plans to retire at the company’s annual meeting on June 7. This includes former Nikola President and Chief Executive Mark Russell.
Steve Girsky attempted to make some positive remarks on the event, likely to a cold investor reception:
“Nikola is focused on delivering results in our core business units of zero-emission trucking and energy infrastructure solutions… As the Company evolves, the size and composition of the Board will as well.”
NKLA stock is down more than 60% this year, fueling concerns over the company’s future on publicly traded indices.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.