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Wabash National Corporation (WNC) - free report >>
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Wabash National Corporation (WNC) - free report >>
Modine Manufacturing Company (MOD) - free report >>
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Nikola (NKLA) to Raise $100M to Keep Up With Rising Costs
Nikola (NKLA - Free Report) is set to raise $100 million through a stock offering. A part of this capital will be raised via a traditional public offering and the remainder will be raised via the private sale of stock to an institutional investor. Nikola will sell 29.9 million shares to the public and 59.9 million shares to its existing convertible bond holder, Antara Capital. The company has been struggling with high production costs. The raised capital will be used to fund its working capital needs and for other general corporate purposes.
Citigroup will underwrite the public offering and has the option to purchase an additional $15 million worth of shares. The public offering is expected to close on Apr 4, 2023, whereas the private sale of stock is expected to close on Apr 11, 2023.
In 2022, Nikola produced 258 battery-electric trucks. For 2023, Nikola is planning to ramp up the production of battery-electric semis. It expects to manufacture 250-350 battery electric semis this year. This fall, the automaker plans to launch a fuel-cell-power truck that will have a longer range than battery-electric trucks.
Following the offering announcement, Nikola’s shares slumped 13.57% to close at $1.21 per share on Friday.
As of Dec 31, 2022, Nikola had $233.4 million in cash and cash equivalents, down from $315.7 million on Sep 30, 2022.
Zacks Rank & Key Picks
NKLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Modine Manufacturing Company (MOD - Free Report) and Wabash National Corporation (WNC - Free Report) , all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.
Modine operates primarily in a single industry of manufacturing and selling heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales implies year-over-year growth of roughly 11.4%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of around 13.1% and 28.9%, respectively.