Nikola (NASDAQ:NKLA), which is trying to build electric semi-trucks, is trading at 59 cents per share this morning and is in danger of delisting. Shares of NKLA stock haven’t traded above $1 each since mid-April.
A Securities and Exchange Commission (SEC) filing gave the firm until Nov. 23 to get the stock price up or be dropped from the Nasdaq.
Losers Going Losing
Nikola was among several small electric vehicle (EV) companies that came public during the special purpose acquisition company (SPAC) boom and are now trading for under $1. Canoo (NASDAQ:GOEV), Hyzon Motors (NASDAQ:HYZN) and Faraday Future (NASDAQ:FFIE) are all below that line.
Lordstown Motors (NASDAQ:RIDE) received a delisting notice in April. It executed a 1-for-15 reverse split this month. Arrival (NASDAQ:ARVL), under a similar threat, executed a 1-for-50 reverse split in April.
However, Nikola is not going in that direction. Instead, it is trying to sell $12 million in new debt convertible into common stock. The company is also seeking a June 2 authorization to increase its number of authorized shares.
The company lost $169 million, 31 cents per share fully diluted, on revenue of $11 million for the March quarter. At the time, CEO Michael Lohscheller said Nikola was focusing on hydrogen fuel cells as a power plant and had orders for 140 of them.
Nikola takes its name from 19th-century inventor Nikola Tesla. It should have taken the name of Denver Nuggets center Nikola Jovic. He has had a better year.
NKLA Stock: What Happens Next?
There is an ongoing shakeout of small American EV makers who tried to compete with Tesla (NASDAQ:TSLA) late in the last decade and are now running out of cash. Larger companies that are already in production, and had deep-pocketed backers, like Rivian (NASDAQ:RIVN) and Lucid Motors (NASDAQ:LCID), are also in trouble. Chinese makers that came public around the same time are not under a similar threat.
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.