Nikola Corp NKLA shares are trading higher Monday. The company announced that it’s taking legal action against the company it sold the Badger electric pickup truck assets to last year.
What Happened: Nikola sold its Badger electric pickup truck and powersports assets to EMBR Motors, a company created by television personality Dave "Heavy D" Sparks, best known as one half of the Diesel Brothers.
In a new regulatory filing, Nikola said Sparks, attorney Cole Cannon and disgraced Nikola founder Trevor Milton subsequently launched a campaign to take over the company’s board after buying the assets, even though Sparks agreed that Milton would not be involved in any way.
“The agreement specifically states that Mr. Milton was to have zero involvement with EMBR or the assets it had purchased as the company felt strongly that he had caused enough reputational, financial, and operational damage to Nikola,” the company said in the filing.
Nikola said it’s clear that EMBR did not adhere to the provisions in the agreement. As a result, the company said it will take legal action against EMBR, Sparks, Cannon and Milton.
NKLA Stock Prediction 2024
Nikola’s revenue growth in FY23 was -28.62%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.6%, growing 1.6% from last year. The unemployment rate was most recently reported as 3.9%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Nikola stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.
NKLA Price Action: Nikola shares were up 5.77% at $1.10 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Nikola.
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