Nikola’s stock tumbles to put record 8-day win streak in danger

Nikola’s stock tumbles to put record 8-day win streak in danger

Shares of Nikola Corp. NKLA, -12.34% dropped 16.1% in premarket trading Wednesday, putting them on track to snap a record eight-day win streak in which the electric truck maker’s stock rocketed 76.3%. In an interview late Tuesday on CNBC’s “Mad Money with Jim Cramer,” Chief Executive Mark Russell did not reassure investors that partnership with General Motors Corp. GM, -2.15% announced in September, which included GM receiving a $2 billion stake in Nikola, would still go through, as CNBC reported.

Also in the interview, Russell said he could not comment on what Founder Trevor Milton, who resigned from the company in September, would do with 92.2 million shares of the Nikola common stock he owned when the lock-up expires on Dec. 1, although many other insiders have agreed to extend their lock-up agreements through April 30, 2021. In total, 161 million shares, or roughly 42% of the common stock outstanding, will become eligible for sale on Dec. 1 as lock-up agreements expire. Nikola’s stock selloff Wednesday comes as shares of other electric vehicle makers are pulling back ahead of the open, with Tesla Inc. TSLA, +3.35% down 1.5%, Nio Inc. NIO, +0.33% shedding 8.8% and Workhorse Group Inc. WKHS, -3.23% sliding 9.4%. Meanwhile, futures NQ00, 0.34% for the Nasdaq 100 NDX, +0.59% are up 0.1% ahead of the open and S&P 500 SPX, -0.15% futures ES00, 0.09% are down 0.1%.

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