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Nikola Motor Company Two Truck
Source: Nikola Motor Company
Shares of Nikola fell 18.3% in intensive trading on Tuesday morning after a share lock-up expired for company insiders and early investors, releasing up to 166 million shares at sell for the first time since the besieged electric truck company went public in early June.
The majority of those shares – 91.6 million – are held by Nikola founder Trevor Milton, who stepped down as chairman of the company in September. A Milton spokesperson declined to comment on Tuesday morning whether the former executive had sold any shares.
More than 50 million Nikola shares had been traded at 11:20 a.m. on Tuesday. That compares to a five-day average of 47.7 million shares and a 30-day average of 20.5 million, according to FactSet.
Read more: Nikola founder Trevor Milton may sell his 91.6 million shares from Tuesday when the insider lock-in period expires
Nikola’s shares were trading below $ 17.30 at 10:59 am The decline adds to an already volatile week for the stock.
Nikola’s shares fell 26.9% to $ 20.41 on Monday after the company announced a reduced deal with General Motors before the markets opened. GM has given up on a stake in the startup and plans to produce the Badger, an electric pickup that was supposed to be the company’s first foray into the consumer market.
About 161 million common shares are eligible for sale as of Tuesday, according to Nikola’s filing with the SEC in the third quarter. An additional 5 million shares may also be eligible for sale depending on the price of the company’s shares. Milton’s ownership includes 6 million shares in “founder’s options” that he could give to early employees.
Milton resigned after the Justice Department and the Securities and Exchange Commission began investigating fraud allegations raised by short seller Hindenburg Research in September.
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