Nikola Secures New HYLA Station In West Sacramento: Retail Bearishness Eases A Bit

Nikola Corp (NKLA) shares were in the spotlight on Wednesday after the firm said it has secured a new HYLA station in West Sacramento. This will mark HYLA's first modular refueling station in Northern California.

Nikola said this is a significant step in HYLA's plan to connect current HYLA stations to northern central California. The new station will be commercially operational in January.

The first phase of the West Sacramento station will be capable of fueling up to 20 Nikola hydrogen fuel cell electric Class 8 trucks daily.

Nikola’s President of Energy Ole Hoefelmann said West Sacramento marks a significant milestone for Nikola and offers convenient access for the company’s fleet customers based in West Sacramento and its surrounding areas.

"Reaching a zero-emission future just became one step closer as we continue our planned rollout to strengthen the north-south I-5 freight corridor and expand coverage areas from the Port of Oakland,” he said.

Following the announcement, retail sentiment on Stocktwits inched up from ‘extremely bearish’ territory to ‘bearish’ zone (34/100).

NKLA’s Sentiment Meter and Message Volume as of 9:14 a.m. ET on Dec. 18, 2024 | Source: Stocktwits

Meanwhile, retail users on the platform are taking note of the development.

Last week, the firm disclosed in an SEC filing that it is looking to sell shares having an aggregate offering price of up to $100 million in an at-the-market offering.

The company intends to use the net proceeds for working capital and general corporate purposes. It added that a portion of the net proceeds may also be used to acquire or invest in complementary businesses, assets, or technologies.

The firm has entered into an equity distribution agreement with BTIG, LLC, as the sales agent for the share sale.

In a separate filing, Nikola disclosed an offering of over 34.15 million shares of common stock, comprising up to 33,920,250 shares issuable upon conversion of the outstanding June 2022 notes and up to 239,006 shares issuable upon conversion of the outstanding June 2023 notes.

Meanwhile, Nikola's shares have lost over 95% since the beginning of the year. In November, DA Davidson reportedly lowered its price target on the stock to $4 from $12, while keeping a ‘Neutral’ rating after the firm’s wider-than-expected third-quarter (Q3) loss.

The firm had highlighted that Nikola's cash balance continues to dwindle and management has noted that it has five to six months left.

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