Nikola (NASDAQ:NKLA) shares are on the rise today after the EV maker provided updates on its efforts to optimize operations.
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These efforts are focused on North America, the production of its zero-emission truck, and the HYLA business. Additionally, Nikola’s hydrogen fuel cell electric truck is anticipated to enter production in the coming weeks.
The company is looking to streamline costs and lower cash usage. It is aiming to localize its supply chain by moving battery production from Cypress, California to Coolidge, Arizona alongside its planned Bosch fuel cell power module assembly in Coolidge.
As a part of these initiatives, the company also eliminated nearly 270 roles. The strategic move is expected to result in annual personnel cost-associated savings to the tune of $50 million for Nikola.
Importantly, these moves come while Nikola’s annual investor meeting was adjourned to July 6 after the proposal to increase its outstanding shares failed to win a majority of all outstanding common shares for approval.
Trevor Milton, the Founder and former CEO of the company voted against the proposal and Nikola has also received a delisting notification from Nasdaq for falling short of the minimum closing bid price requirement.
Overall, the Street has a $3.25 consensus price target on Nikola alongside a Hold consensus rating. Nikola shares have rocketed nearly 65.6% over the past month while short interest in the stock now stands at about 20.6%.
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