The proceeds from the sale will be used for general corporate purposes, including potentially providing funds to complete the Phoenix-based company's Arizona manufacturing facility, as well as for the development of electric and fuel cell commercial and hydrogen-station infrastructure.
Electric vehicle makers are currently trying to raise capital to win a piece of the estimated $5 trillion market for EVs over the next decade, according to Wedbush analyst Dan Ives. On Feb. 1, Ives raised his rating on Nikola from underperform to neutral and his price target from $15 to $25, saying he believed most of the negative issues it had faced were now behind it.
Shares of Nikola were falling 3.87% to $16.40 in pre-market trading on Tuesday.
Last month, Nikola released details about its hydrogen fuel cell electric commercial truck program, unveiling a series of trucks with ranges from 500 miles to 900 miles.
Nikola said it planned to introduce fuel-cell-electric-vehicle variants of the Nikola Tre Cabover, the Nikola Tre FCEV and the Nikola Two FCEV Sleeper in the North American market.
The trucks are aimed at the commercial freight market, with the Nikola Tre BEV Cabover for trips of up to 300 miles, the Nikola Tre FCEV for trips of up to 500 miles and the Nikola Two FCEV Sleeper for trips of up to 900 miles.