Nikola Delays Shareholder Vote Again to Secure Stock Expansion Approval
Electric truck maker Nikola pushes its annual meeting to mid-July as it seeks more votes to approve issuing 200 million additional shares. The company faces pushback from founder Trevor Milton amid ongoing struggles to bring its Tre semi truck to market.
Troubled electric truck manufacturer Nikola adjourns its annual shareholder meeting to July 18 as it works to rally support for a crucial stock expansion measure. The company seeks approval to increase its authorized common stock from 600 million to 800 million shares, a move executives say provides essential flexibility for future growth and development.
The push for more shares comes as Nikola navigates significant hurdles, including delays in bringing its Tre semi truck to market. These operational challenges follow a string of controversies involving founder Trevor Milton, who faces federal fraud charges and recently contributes the vast majority of votes against the stock proposal.
While more than 48% of outstanding shares already back the measure, the company needs a majority of all common stock to pass the initiative. With over 112 million shares still uncast, Nikola delays the vote a second time to give remaining shareholders additional opportunity to weigh in on the funding strategy.