Benzinga | Nov 5, 2021 09:16AM EDT

Why Nikola Shares Are Rising

Nikola Corporation (NASDAQ:NKLA) shares are trading higher after the company reported third-quarter results and provided an update on an SEC investigation.

The company reported quarterly losses of $(0.22) per share which beat the analyst consensus estimate of $(0.27) by 18.52 percent.

Nikola also announced it has begun building pre-series trucks in Coolidge, Arizona and continue to work steadfastly towards our commitment to deliver up to 25 trucks to dealers and customers by December 2021.

Nikola and the staff of the Division of Enforcement at the SEC have been engaged in discussions regarding a resolution of the SEC's investigation. The company expects that, if approved, the resolution would include a $125 million civil penalty paid in installments over time.

"With prospects of an SEC settlement, we're looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close and maintaining our focus on delivering trucks to our customers, and building the energy, service, and support infrastructure our customers need," said Mark Russell, Nikola's Chief Executive Officer.

Nikola Corporation engages in the development and integration of energy and transportation solutions in the United States. The company operates in two business units: Truck and Energy.

Nikola's stock was trading about 19% higher at $15.12 per share on Thursday at the time of publication.