Nikola Corporation NKLA CEO Trevor Milton said he is giving six million of his own shares in the electric vehicle firm to the first 50 employees, making good on a promise he made to them when they were hired.
What Happened: The chief executive announced the share largesse on social media Wednesday.
The six million shares are worth close to $233 million as of Wednesday’s closing. The automaker debuted on the Nasdaq Stock Market in June through a reverse merger with VectorIQ Acquisition, a blank check company.
Nikola shares have surged nearly 277% YTD and the company is valued at $14.7 billion.
Why It Matters: The EV maker’s focus is on heavy-duty freight and hydrogen-powered battery vehicles. The company is aiming to mirror the success of Tesla Inc’s TSLA charging network but with a web of hydrogen-refueling facilities.
Wedbush analyst Daniel Ives assigned a Neutral rating with a $45 price target on Nikola and believes if the company could stay true to its roadmap, it could justify its valuation.
The Phoenix-based automaker is reportedly due to unveil its Tre BEV truck on September 24, while its Badger pickup is scheduled for unveiling in Dec. 2020.
The automaker reported a net loss of 33 cents per share in its second quarter compared with 6 cents per share in the same period last year.
On July 22, the company issued a notice of redemption of public warrants and expected to raise $264.5 million in cash through 23 million outstanding warrants at $11.50 per piece.
Price Action: Nikola shares closed nearly 0.9% lower at $38.82 on Thursday.
Photo courtesy: Nikola Corp.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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