Shares of Nikola were down sharply late Friday after an SEC filing triggered a wave of trading activity that saw warrants for the company jump.
The filing is a preliminary prospectus that pertains, in part, to stock warrants that were issued as part of Nikola's initial public offering in early June. Nikola went public through a merger with VectoIQ, a special-purpose acquisition company.
According to the filing, Nikola plans to offer 249,843,711 total shares, a number that includes tens of millions of public and private warrants that were issued as part of the IPO but are not yet unlocked for trading.
Nikola warrants NKLAW jumped $2.98, or 12%, to $27.60 in after-hours action after gaining 5.4% in the regular session.
In a recent note, analysts at JP Morgan cautioned that Nikola's stock could fall as the stock warrants become tradeable.
Nikola shares fell 7% during Friday trading after Deutsche Bank analyst Emmanuel Rosner praised the company's technological concept and market opportunity, but declined to recommend the stock, positing that the risks are not yet accounted for in Nikola's $17.6 billion valuation.
Nikola is developing zero-emission commercial trucks using hydrogen fuel cells, but has not yet produced or sold any vehicles.
Nikola is scheduled to shop its first vehicle in mid-2021, with a second model slated to debut in 2023.
Deutsche Bank estimates that Nikola could sell 15,000 zero-emission semi-trucks in 2025, with that number growing to 50,000 by 2030, generating $18.2 billion in revenue by that time. Rosner estimates the size of the North American Class 8 commercial vehicle market to be $130 billion, with the European market currently sitting at $150 billion.
Since its stock market debut in early June, shares of Nikola are up 35%.