Nikola stock falls after EV maker receives notice of noncompliance with minimum-price listing requirement

Published: May 25, 2023 at 9:49 a.m. ET

Tomi Kilgore

NKLA

-20.27% 

DRIV

+1.22% 

SPX

+0.88% 

Shares of Nikola Corp. NKLA, -20.27% sank 4.2% in morning trading Thursday, after the electric vehicle maker disclosed that it has received from the Nasdaq exchange a notice of noncompliance with the minimum-bid listing requirement. The Nasdaq requires stocks to maintain a minimum bid price of $1.00 to remain listed, while Nikola’s stock has closed below $1.00 for the past 31 sessions through Wednesday, starting April 11. “Based on the closing bid price of the Company’s common stock for the 30 consecutive business days prior to the date of the Notification Letter, the Company does not currently meet the minimum closing bid price requirement,” the company stated. The Nasdaq’s notice states Nikola has until Nov. 20 to regain compliance, which will require the stock to close at or above $1.00 for10 consecutive sessions. The stock has tumbled 65.8% year to date, while the Gl X Autonomous & Electric Vehicles exchange-traded fund DRIV, +1.22% has rallied 16.8% and the S&P 500 SPX, +0.88% has gained 7.8%.

Nikola Plunges as Nasdaq Says Sub-$1 Stock Price Risks Delisting

Stock hasn’t traded above $1 listing minimum since April 11
Company has until Nov. 20 to regain listing compliance

The grille of a Nikola Tre battery-electric truck in Ulm, Germany. — The grille of a Nikola Tre battery-electric truck in Ulm, Germany.Photographer: Andreas Gebert/Bloomberg

Angel Adegbesan

May 25, 2023 at 12:31 PM PDTUpdated onMay 25, 2023 at 1:10 PM PDT

Nikola Corp. tumbled Thursday after Nasdaq Inc. notified the company that it isn’t in compliance with the minimum bid requirements to remain listed on the exchange.

Shares of the electric truckmaker sank 20%, the most since November 2020. The stock is down 72% this year as of Thursday’s close, when it ended the session with a price of 62 cents.