Shares of Nikola (NASDAQ:NKLA) are surging at the time of writing. This comes despite once again postponing its annual shareholder meeting after falling short of the votes needed to greenlight proposal 2 to issue more shares and raise funds. The firm now plans to reconvene on August 3rd. At present, the move necessitates a majority of all outstanding shares for approval but a key amendment to the Delaware General Corporation Law (section 242) is anticipated to be effective on August 1.
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Post this amendment, Nikola’s proposal 2 would require only a majority of the shares actually voting on the proposal, and the company noted that “Under this proposed new law, if the annual meeting were to be held on July 6, a sufficient number of shares would have been voted in favor of Proposal 2.”
Despite today’s price gains, Nikola shares are still down nearly 73% over the past year, and short interest in the stock still remains sky-high at ~21%. Yesterday, investors were left unimpressed despite Nikola bagging a $41.9 million grant (in collaboration with the California Department of Transportation) to set up six heavy-duty hydrogen refueling stations in Southern California.
Is NKLA a Good Stock to Buy Now?
Overall, the Street has a $3.25 consensus price target on Nikola alongside a Hold consensus rating. This points to a massive 126.5% potential upside in the stock.
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