How will the reverse stock split affect Nikola's stock price?

The reverse stock split is expected to have a positive impact on Nikola's stock price by addressing potential delisting concerns and resetting the company's financial foundation. Here's how it could work:

1. **Reduced Number of Shares Outstanding**: The reverse stock split will consolidate the number of existing shares into fewer, but more valuable shares. This reduction in the number of shares outstanding will increase the dollar value per share by the same ratio.
2. **Elimination of Delisting Risk**: By having a stock price that consistently trades above the $1.00 threshold, Nikola aims to eliminate the risk of Nasdaq delisting.
3. **Improved Investor Interest**: The company believes that by achieving a share price at a more consistent level with the Russell 3000 companies, it will encourage investor interest and improve the marketability of their common stock to a broader range of investors.
4. **Capital Raising Efficiency**: The reverse split is intended to position Nikola to raise capital more efficiently and effectively in the future.
5. **Analyst Perspectives**: The current analyst consensus rating for Nikola is "Neutral," with an average price target of $0.5. This suggests that analysts do not see a significant upside in the stock price post-split, which could be due to concerns about the company's financial performance or market conditions.
6. **Technical Analysis Indicators**: The stock's 10-day moving average is $0.5, and the support level is $0.47, while the resistance level is $0.5. These indicators suggest that the stock is trading close to its support level and facing resistance at the same price point where the moving average intersects. A reverse split could theoretically push the stock price above these levels, potentially breaking through resistance and signaling a bullish trend.
7. **Investor Sentiment**: The vote for the reverse split by Nikola stockholders indicates a desire to avoid delisting and attract new investors, which could be positive for stock price stability and future growth.

In conclusion, while the reverse stock split is expected to help Nikola address its delisting concerns and potentially attract new investors, its impact on the stock price will depend on various factors, including investor sentiment, market conditions, and the company's financial performance.