Nikola stock falls after shareholders file to sell off their stakes

An earlier version of this Market Pulse incorrectly reported in the headline and the body of the article that Nio stockholders had filed to sell shares. It was Nikola shareholders who disclosed their intention to sell shares, not Nio shareholders. The report has been corrected.

Shares of Nikola Corp.
shed 2.7% in morning trading Friday, after the electric-vehicle maker disclosed the offering of 1.68 million shares by selling stockholders. In an S-1 filing with the Securities and Exchange Commission late Thursday, Quasar Energy Partners LLC, Philipp Brothers Fertilizer LLC and Little Brothers LLC disclosed they are selling off their entire stakes in Nikola, totaling 1,682,267 shares, representing 0.4% of the shares outstanding and valued at $23.8 million at Thursday’s closing price of $14.17. The company said it will not receive any proceeds from the offering. The stock has lost 9.7% to date in 2021, while shares of EV leader Tesla Inc.
have declined 8.8%, and ADRs of fellow EV company Nio Inc.
have fallen more than 20%; the benchmark S&P 500
has gained 16.7%.

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