Electric truck maker and Tesla TSLA competitor Nikola Corp. NKLA dropped over 21% on Monday after the company said it is planning to issue up to 23.9 million shares. Nikola will issue warrants allowing holders to buy shares at $11.50.
This brings the total number of outstanding NKLA shares outstanding to 384.8 million from 360.9 million.
Nikola wants to use the proceeds for general corporate purposes.
NKLA now trades at its lowest level since June 5 and could be an attractive entry point for some investors looking for exposure to a pure-play electric vehicle company.
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