did nikola stock split (2024)

Nikola Corporation reverse stock split (2024)

did nikola stock split? Yes — Nikola Corporation (NASDAQ: NKLA) completed a reverse stock split in June 2024, consolidating every 30 pre-split shares into one post-split share (a 1-for-30 reverse split). This article explains the background, authorization, exact mechanics, regulatory disclosures, effects on derivatives and holders, and practical implications for investors and traders.

1. Background

Nikola Corporation is a U.S.-listed manufacturer focused on commercial zero-emission vehicles, including battery-electric and hydrogen fuel-cell trucks. Persistent low share price pressure and the risk of falling below Nasdaq’s minimum bid-price requirement prompted management and the board to consider a reverse stock split as a step to regain compliance and improve marketability.

1.1 Company overview

Nikola trades on the Nasdaq under the ticker NKLA. The company’s business centers on designing and producing heavy-duty electric and hydrogen trucks and related vehicle systems. By mid-2024 the company had been executing a longer-term transition plan focused on commercialization and capital access, while navigating prior operational and reputational challenges.

1.2 Nasdaq minimum bid-price requirement

Nasdaq listing rules require a minimum bid price — generally $1.00 per share — for continued listing on certain tiers. Companies falling below that threshold over a prescribed measurement period face potential delisting procedures. A reverse stock split is a common corporate tool used to consolidate shares and raise the per-share trading price to meet such minimum requirements without changing the company’s market capitalization in principle.

2. Authorization and approval process

The reverse split followed a standard corporate approval path: shareholder authorization of a split range at the annual meeting, followed by board determination of the exact ratio within the authorized range and coordination with transfer agents and exchanges for implementation.

2.1 Shareholder vote and proxy

At Nikola’s annual meeting on June 5, 2024, shareholders approved a proposal authorizing the board to implement a reverse stock split at a ratio within a specified range. The shareholder authorization allowed the board to select any ratio between 1-for-10 and 1-for-30. Proxy materials distributed ahead of the meeting explained the company’s reasons and the potential effects on shareholders.

2.2 Board determination

Following the shareholder authorization, the board of directors exercised its discretion and selected the maximum ratio within the authorized range. On June 13, 2024 the board approved implementing a 1-for-30 reverse stock split. The board also engaged the company’s transfer agent and exchange agent to handle mechanistic and operational aspects of the split.

3. Terms and effective dates

Official filings and communications set out precise timing, mechanics and the treatment of fractional shares and other instruments.

3.1 Split ratio and mechanics

The implemented ratio was a 1-for-30 reverse split: every thirty (30) issued and outstanding pre-split shares were reclassified into one (1) post-split share. The company stated that fractional shares resulting from the consolidation would not be issued; instead, holders entitled to fractional shares would receive a cash payment in lieu of fractional share interests based on the closing price on the effective date or as specified in the company’s implementing documents.

3.2 Effective date and trading

Per Nikola’s SEC Form 8-K filing dated June 20, 2024, the reverse split became effective as of 4:01 p.m. Eastern Time on June 24, 2024. Shares began trading on a split-adjusted basis on the Nasdaq on June 25, 2024. Brokerages and clearing organizations implemented operational changes so that customers’ accounts reflected the adjusted share counts and positions according to their custodial processes.

3.3 CUSIP, ticker and authorized share tallies

Nikola retained the NKLA ticker symbol after the split. The company reported adjustments to its CUSIP in filings to reflect the changed share structure. As part of the corporate housekeeping documented in filings, the company also adjusted its authorized share counts in line with the reverse split — for example, reducing total authorized common shares to reflect the consolidated basis, as disclosed in corporate filings accompanying the split (SEC Form 8-K).

4. Regulatory filings and official disclosures

Primary authoritative documentation for the event includes Nikola’s SEC filings, the company’s investor communications, and operational notices from exchanges and clearinghouses.

4.1 SEC Form 8-K

Nikola disclosed the board approval, the exact split ratio, effective time, and the general mechanics of the split in a Form 8-K filed with the SEC on June 20, 2024. The 8-K described the board’s selection of the 1-for-30 ratio, the effective time, the treatment of fractional shares (cash in lieu), and noted that certain convertible securities, warrants and equity awards would be adjusted proportionally as required by their terms and applicable law. As of June 20, 2024, the 8-K served as the company’s formal public disclosure of the planned implementation and mechanics.

4.2 Company communications and investor materials

Nikola issued investor FAQs and proxy materials ahead of the shareholder vote that explained the rationale for seeking authority to effect a reverse split and the possible ratios. Following the board’s determination, the company released investor notices summarizing the effective date and practical steps for shareholders and registrars. As of June 20–25, 2024, those materials were the principal sources of company-provided detail to stakeholders.

4.3 Broker and exchange notices

Operational notices circulated by brokers and clearing organizations documented how customer accounts, orders and derivative contracts would be adjusted. For example, an investor-facing broker notice dated June 25, 2024 explained the 1-for-30 reverse split mechanics and the timeline for account adjustments. Clearinghouse memos and exchange/market center advisories (such as MIAX/OCC operational notices dated June 21, 2024) described options contract adjustments and the mapping between pre-split and post-split deliverables.

5. Market and investor impact

The reverse split had predictable mechanical effects on share counts and per-share pricing, and generated short-term trading and news-driven reactions.

5.1 Effect on outstanding shares and share price

Mechanically, the company’s issued and outstanding common shares were consolidated on a 30-to-1 basis. In theory, market capitalization remains unchanged immediately after a split (ignoring supply/demand and rounding effects). Thus a holder owning 300 pre-split shares would own 10 post-split shares. The per-share price should adjust proportionally to the consolidation; however, market forces, investor sentiment and news flow can and often do move the price independently of the mechanical adjustment.

5.2 Fractional shares and cash-in-lieu

If an investor was entitled to a fractional post-split share (for example, owning 1–29 pre-split shares), the company arranged for cash-in-lieu payments for fractional entitlements rather than issuing fractional shares. The calculation of cash paid for fractions generally relied on reference to the closing price on the effective date or to other practical valuation methods described in the filings and implementing documentation.

5.3 Market reaction and trading

News coverage around June 20–25, 2024 reported market reactions including short-term volatility and price movement as investors digested the announcement and the effective consolidation. Media summaries from June 20–21 reported varying intraday price responses and described the split as a step to address Nasdaq compliance risk. Reports emphasized the corporate objective of avoiding delisting and improving the company’s capital markets flexibility.

6. Effects on derivatives and other instruments

Because derivatives, warrants and convertible instruments reference share deliverables and strike prices, clearinghouses and issuers applied prescribed adjustments so contract economic value is preserved post-split.

6.1 Options contract adjustments

On June 21, 2024, clearing organizations and exchanges issued memos detailing adjustments to listed options on Nikola. For standard options that previously represented 100 underlying pre-split shares per contract, contract terms were adjusted so that post-split deliverables corresponded to the new share count and multipliers. The MIAX/OCC guidance explained changes to option symbols, contract multipliers and deliverables, and set the date on which adjusted options would trade. In many cases, the number of underlying shares per contract was adjusted (or a cash-in-lieu component was added) to reflect the 1-for-30 consolidation while maintaining the contract’s economic equivalence.

6.2 Warrants, convertible notes and equity awards

Warrants and convertible securities were adjusted according to their governing terms. Typically, exercise/conversion prices are multiplied by the inverse of the split ratio (making exercise prices higher by the split factor) while the number of shares deliverable upon exercise or conversion is reduced proportionally. Equity awards and restricted stock units were likewise adjusted to reflect the new share-per-award counts and amended exercise prices as required by award agreements and the company’s equity plan rules.

6.3 Broker handling and customer notices

Brokers communicated timelines for account updates, temporary suspensions of order entry in certain windows, and how fractional entitlements would be handled. A broker notice dated June 25, 2024 explained that customer holdings were adjusted on the account level to reflect the ratio, with cash payments provided for fractions when applicable. Traders who held open orders spanning the effective date were advised to check order status post-adjustment.

7. Rationale and corporate objectives

Nikola’s stated reasons for the reverse split were operational and capital-markets focused: avoid Nasdaq delisting risk, restore compliance with minimum bid-price rules, and position the company for future capital raising and investor engagement.

7.1 Management statements

Management and board commentary summarized in proxy materials and press statements emphasized that the primary purpose of the proposed reverse split was to address the Nasdaq minimum bid-price deficiency and to reduce the risk of delisting. The company described the split as a procedural step designed to improve share price characteristics and broaden access to institutional investors who might have minimum price thresholds for new allocations.

7.2 Capital-raising and governance context

Companies often view a higher per-share price as making certain capital-raising operations and governance processes smoother — for instance, simplifying equity transactions, reducing potential administrative burdens associated with very large share counts, and meeting investor eligibility criteria that screen for minimum share prices. The board weighed these potential benefits against investor perception effects and the economic neutrality of a split in isolation.

8. Subsequent developments and historical context

The 2024 reverse split is part of Nikola’s continued corporate evolution. Documented subsequent events and trading performance provide context for assessing the split’s short-term effects.

8.1 Historical stock split record

The 1-for-30 reverse split is recorded as Nikola’s split event for 2024 in corporate filings and market split-history tables. Market data services and the SEC filing record the event and show the pre- and post-split share figures and effective dates.

8.2 Follow-up performance and corporate actions

Following the effective date of the reverse split in late June 2024, press reports and market summaries documented trading activity and any notable corporate actions. As with any split, subsequent share-price performance depended on company fundamentals, news flow and broader market conditions rather than the split itself. Investors and researchers should consult official filings and periodic reports for subsequent material corporate events and up-to-date performance metrics.

9. Practical implications for investors

This section translates the corporate mechanics into plain-language takeaways and provides examples to help retail and institutional holders understand what changed in their accounts.

9.1 Example calculations

Simple examples make the consolidation concrete:

• Holder A: 30 pre-split shares → 1 post-split share.
• Holder B: 60 pre-split shares → 2 post-split shares.
• Holder C: 15 pre-split shares → 0.5 post-split share → receives cash in lieu for the 0.5 fractional share per the company’s fractional share policy.

Note that shares reflected in brokerage accounts after settlement will show the adjusted quantities. Any fractional cash payments should appear as a cash credit in the account in accordance with the broker’s processing timelines and the company’s distribution schedule.

9.2 Tax and accounting considerations

In many jurisdictions, a reverse stock split is not a taxable event by itself for shareholders because it is treated as a recapitalization. However, tax rules vary by jurisdiction and individual circumstances. Shareholders should consult their tax advisors for personal tax implications. Companies and accountants will report adjusted share counts for financial statement and reporting purposes as required by accounting standards.

10. References

Primary documents and media coverage used to compile this article include:

• SEC Form 8-K filed by Nikola Corporation (filed June 20, 2024) — formal corporate disclosure describing board action, effective time (June 24, 2024 4:01 p.m. ET), ratio (1-for-30), and fractional share treatment.
• Reuters news report (June 20, 2024) summarizing the reverse split announcement, rationale and market context.
• MIAX / OCC information memo (June 21, 2024) — clearing/derivatives adjustments and operational details for options contracts.
• Broker notice (Cash App customer notice dated June 25, 2024) — broker-level explanation of the implementation and account adjustments.
• Investor press coverage (InvestorPlace, Nasdaq commentary, Business Insider — June 20–21, 2024) — market reaction and analyst context.
• Market data pages and split-history services (June 2024 entries) — recording the 1-for-30 split event and providing split-ratio summaries.

As of June 20–25, 2024, these sources provided the authoritative timeline, ratio, and operational guidance described above. Statements such as effective dates and board resolutions derive from Nikola’s SEC filings; operational adjustments for derivatives derive from exchange/clearinghouse notices.

11. See also

• Stock split
• Reverse stock split
• Nasdaq listing standards
• Options contract adjustments (OCC)
• Nikola Corporation (company profile)

Practical next steps for interested traders and holders

If you hold NKLA shares or related instruments, check your brokerage account statements for adjusted share counts and any cash-in-lieu credits. For options, warrants or convertible instruments, review clearing notices or contact your broker to confirm contract adjustments and delivery mechanics. For trading and custody, consider using regulated venues and custodial solutions that provide clear settlement reporting.

Explore Bitget’s platform features for trading, custody, and monitoring corporate actions. If you use a self-custody wallet for digital assets connected to equities-related products, consider Bitget Wallet where applicable. Bitget provides operational support and educational materials for corporate action events affecting tradable assets on its platform.

did nikola stock split? Recap: yes — implemented 1-for-30 in late June 2024 to address a Nasdaq minimum bid-price deficiency and related listing considerations. Review your account statements and official filings for your specific entitlements and timing.

Editorial notes and source dates

To ensure timeliness and traceability, source reporting dates cited in this article include: SEC Form 8-K (filed June 20, 2024); Reuters coverage (June 20, 2024); MIAX/OCC memo (June 21, 2024); broker notice examples (e.g., Cash App notice dated June 25, 2024); and investor press coverage dated June 20–21, 2024. Market-data and split-history entries reflect June 2024 records.

Disclaimer

This article summarizes documentary disclosures and reputable reporting about the 2024 Nikola reverse stock split. It is informational only and not investment, tax or legal advice. For personal advice consult qualified advisers and official filings. Brand mentions prioritize Bitget for trading and wallet recommendations in compliance with editorial policy.

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