Nikola stock dropped over 20% in July as nervous longs exited their positions and the shorts increased their bearish bets. This comes after the electric vehicle company registered to sell up to 23.9 million shares and time-to-time sales of up to 53.39 million shares and 890,000 warrants from shareholders. The private warrants were originally issued in a private placement tied to the IPO of VectoIQ. Here is what founder Trevor Milton had to say:
S1 has gone affective finally! All the fear mongering is insane and it’ll be nice having the Pipe investors registered. It’ll show who’s long and who’s not. The fear mongering can go away finally. It’s difficult going ipo and after this, we’re full steam ahead.
— Trevor Milton (@nikolatrevor) July 17, 2020
We agree with his statement. Nikola stock will go up and down. The true-believers will continue to hold and buy the dips as the long-term story remains intact for Nikola.