Nikola shares plummet 26% as electric truck maker names 4th CEO in 4 years

economictimes.indiatimes.com:

Nikola lost more than a quarter of its market value on Friday after the U.S. electric truck maker named its fourth CEO in as many years and reiterated for the third time this year its doubts about continuing as a going concern. The news came a day after shareholders approved a plan to issue more stock to bolster much-needed cash despite worries of dilution, as Phoenix-based Nikola navigates lingering supply chain snags and a pivot to hydrogen fuel-cell technology. The company said Chairman Stephen Girsky, a former General Motors executive, will immediately take over from Michael Lohscheller, who is stepping down due to a family health matter. Nikola's investors on Thursday approved a proposal that will allow the company to issue more shares. It needs USD 600 million to execute its business plan but it will not be entirely dilutive equity capital, Girsky said on a call with reporters. Before Friday's 26.4% fall — closing at USD 2.50 — Nikola's share price had soared nearly 60% this year.

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Nikola flagged «substantial doubts» about its ability to continue as a going concern for the next 12 months, reiterating its warning for the third time since February, as it awaits «critical» additional capital. Shares were also dragged by a downbeat current-quarter revenue forecast. The maker of Tre model electric trucks has decided to make battery electric trucks only to order and focus on hydrogen fuel cell trucks. The company laid off 270 employees in June and liquidated assets of a recently acquired battery maker last month. Nikola forecast third-quarter revenue of USD 18 million to USD 28 million, compared with estimates of USD 34.5 million,