Why Nikola Stock Pared Big Early Gains Today

Group 1 - Nikola's stock experienced a significant increase, jumping as much as 16% in early trading, and closing higher by 3.4% later in the day [1][2] - The surge in Nikola's stock was influenced by Volkswagen's announcement of a $5 billion investment in Rivian Automotive, which is seen as a positive signal for the EV sector [3] - Nikola has faced challenges in raising capital and maintaining its Nasdaq listing due to a decline in share price, leading to a recent reverse stock split approved by shareholders [4][5] Group 2 - The reverse stock split of 1-for-30 was implemented to help maintain Nikola's listing on the Nasdaq, although it does not change the company's overall valuation [5] - Despite some positive movement in stock price, Nikola's financial viability remains uncertain, and any potential support from other automakers is speculative [6]