Nikola Corp.’s persistently low stock value led Nasdaq to consider delisting the electric truck maker for the second time in eight months. However, despite the option of a reverse stock split, which could elevate share prices, Nikola’s CEO Steve Girsky remains composed, stating, “[A reverse split] hasn’t come up at the board. When we look at the top five things we’re working on, that’s not one of them.”
With a 180-day window until July 17, Nikola aims to boost its share price above $1 for 10 consecutive trading sessions to avoid delisting. Girsky compares stock fluctuations to rubber bands, emphasizing the company’s focus on performance and customer satisfaction.
Despite Nikola’s share price falling by 76% in the past year, recent business developments include selling 35 hydrogen-powered fuel cell trucks in Q4 and securing a $22 million order from IMC for 50 fuel-cell trucks. However, the company’s cash position, detailed in the upcoming Q4 earnings report, remains undisclosed, and a notice of going concern filed last February adds an element of uncertainty. Girsky clarifies, “We’re managing to improve the cash profile of our business, satisfying our customers and getting trucks in the field.”