Nikola’s stock plunged about 9% the previous day but staged a dramatic comeback, surging over 10% on Tuesday.
The company’s shares rose 10.10%, closing at 79 cents on the New York Stock Exchange.
There were no major news or developments related to Nikola that day. The surge appears to be driven by bargain hunters capitalizing on the previous day’s sharp decline.
A day earlier, Nikola’s stock had fallen 8.86% to 72 cents amid renewed bankruptcy speculation, hitting an all-time low.
Following a 10-for-1 reverse stock split last year, the stock price is just 7 cents higher than before.
On January 23, Nikola’s stock plummeted 28% due to bankruptcy rumors, sinking below the critical $1 mark. Since then, it has struggled to reclaim that level.
Tuesday’s unexpected 10% surge seems to be a classic case of bargain hunting after the recent steep drop.
Nikola’s stock trading below $1 has become a magnet for speculative traders, leading to sharp price swings in recent sessions.