Nikola stock gets lift after announcing reverse stock split

Commercial EV maker Nikola (NKLA) is seeing some lift in its stock ahead of the market open, after sinking Thursday on a 1-for-30 reverse stock split announcement. The reverse split will go into effect at the market's close on Monday, June 24.

The Morning Brief weighs in on the corporate narratives swirling around Nikola and its stock.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

Also, we're tracking shares of Nicola Nicola shares, reversing course after originally plunging on news of its plans for a one for 30 reverse stock split.

The move set to go into effect after the market closed on June 24th.

Shares of Nicola are down over 60% so far this year.

Free market.

We're catching a bit of a breather as we mentioned reversing course here from those deep declines that we had seen on the announcement of this, Uh, but I think for Nicola, I mean, look, I, I it's giving documentary.

Eventually there's going to be some type of wework ask or uber E story that's told about this company and or or or I. I mean, dare I say, uh, Fire festival type of business story that that comes together just with everything that's taken place the investigation into the founder, Trevor Milton.

What that eventually led to after the, um, legal proceedings.

And then, of course, just the fraudulence in trying to go out to investors and tell them Hey, yeah, we've We've got this.

It's ready to be produced, and, uh, I'm taking on massive amounts of capital in order to produce something that eventually years later did not.

I think we just last year finally saw the first vehicle hydrogen electric truck get delivered.

I mean, we've been talking about this for, like 34 years.

No, it's a great point, Brad.

And as some context here, this is the company that provides battery and hydrogen fuel cell electric vehicles.

To your point, though, just delivering that truck last year.

And this comes amid a week that we've seen a couple of headlines that have been negative for just the broader EV industry.

You've got F finally kind of shutting its doors, filing for that official bankruptcy.

That led to a little bit of downward pressure for Tesla and some smaller EV stocks as well.

So a tough week when it comes to some of these EV related names.