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%.