Coinspeaker
Nikola (NKLA) Stock Gains Neary 9% after Founder Trevor Milton Was Ordered to Repay $165M
Nikola Corp (NASDAQ: NKLA), an American-based manufacturer of heavy-duty electric vehicles, is now prepared to face a brighter future after a New York arbitration panel ordered former Chief Executive Officer (CEO) and founder Trevor Milton to repay the company $165 million plus interest. Notably, Nikola had been for months seeking reimbursement from Milton for the cost and damages caused during his tenure. Moreover, Nikola Corporation agreed to pay a penalty of $125 million to the United States Securities and Exchange Commission (SEC) to settle fraud charges in 2021. Following the announcement, Nikola stock topped $1 on Tuesday after adding about 9 percent during the day.
The $940 million valued company has seen its stock market trapped in a downward trend since mi-2020, with a decline of over 98 percent from its ATH. However, the recent ruling could see the company’s stock market rebound amid notable demand for electric vehicles, especially trucks. Moreover, NKLA stock has found a notable support zone between 53 cents and 87 cents, amid a symmetrical triangle formation YTD that could yield an imminent reversal.
Meanwhile, Nikola intends to file with the New York arbitration panel to recover the attorney fees that were spent during the legal process.
Nikola (NKLA) Stock and Market Performance
Nikola Corp is expected to report its third-quarter earnings result on November 2, amid a push by the management to make the company profitable. During the second quarter earnings result presentation, Nikola CEO Michael Lohscheller highlighted that the company has continued to widen its scope of operations after doubling its unrestricted cash position by $107 million. Moreover, the company raised $233.2 million through asset monetization in a bid to enhance electric truck delivery. Interestingly, the company secured $50 million in grant funding from various California-based firms.
Notably, the company delivered 45 wholesale and 66 retail trucks during the second quarter.
For the company to become profitable, the management intends to focus more on efficient battery production in the near future. For instance, the company is negotiating a stake with Fortescue Future Industries (FFI) after it acquired the Phoenix Hydrogen Hub project in a bid to support its hydrogen demand. Moreover, the company announced that 18 customers have placed orders for over 200 hydrogen fuel cell electric trucks.
Nikola’s trucks will be competing with Tesla Inc (NASDAQ: TSLA) which has been in development mode for the past few years. Already, Tesla has intensified its cell battery production in different markets to ensure its future growth prospects. As a result, Nikola will have to convince its customers and resellers that the products are durable and can compete with competitors in the market.
Nikola (NKLA) Stock Gains Neary 9% after Founder Trevor Milton Was Ordered to Repay $165M
