Tesla Rival Nikola Sinks on Share Approval

© Reuters.

By Christiana Sciaudone
Investing.com — Tesla (NASDAQ:) rival Nikola dropped 20% on Monday after SEC share approval.

The Securities and Exchange Commission approved more than 77 million shares of Nikola related to warrant holders and private investment in public equities investors, CNBC Pro reported, as part of the company’s structure when it went public through special acquisition company VectoIQ on June 4.

There are roughly 24 million warrants that are now exercisable, giving investors the right to buy the stock for $11.50, and about 53.4 million shares owned by private investment in public equities investors.

Deutsche Bank (DE:) said large technical selling pressure could continue as early investors lock in gains, CNBC Pro reported. The sell-off could make for a buying opportunity, the bank said, with Nikola one of the few ways to gain exposure to a pure-play electric vehicle company.

Tesla, meanwhile, was up 9% ahead of Wednesday’s earnings report.

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