BTIG downgrades Nikola to Neutral after stock offering, expects further dilution

As previously reported, BTIG analyst Gregory Lewis downgraded Nikola to Neutral from Buy without a price target after the company diluted shareholders by about 11% for $100M of equity to address some near-term liquidity needs. Management, which earlier this year slowed production of the Tre BEV, "continues to make the tough decisions," as producing fewer trucks actually will save the company money until they can reduce production costs, the analyst tells investors. However, despite the $100M cash injection, "management still has a lot of work to do" to balance cash burn against its existing cash and the firm says its downgrade reflects expectations for further dilution.