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Fidelity Cuts Stake in Nikola Across Four Funds

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Written by Cláudio Afonso | LinkedIn | X

Fidelity has cut its Nikola stake across four funds during the third quarter of the year, new filings revealed on Tuesday. Currently, the Phoenix-based startup has 266 institutional shareholders holding about 15.9 million shares, according to the data platform Fintel.

Fidelity’s collective stake in truck maker dropped from over 10 million shares to just 380,977 shares by the end of August, representing a reduction of nearly 9.6 million shares or 96.2% across four funds. The stake across these four funds is valued at approximately $2.53 million.

In June, Nikola executed a 1-for-30 reverse stock split to regain compliance with Nasdaq listing requirements.

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In late September, Fidelity Small Cap Index Fund (FSSNX) reported that it had sold its position of about 7.3 million shares during the second quarter of the year.

According to Fintel, at the start of the third quarter, Fidelity held a combined total of about 10,012,681 shares in Nikola across its Nasdaq Composite Index Fund, Total Market Index Fund, Series Total Market Index Fund, and Extended Market Index Fund.

Year to date, Nikola shares have lost nearly 84% of their value and are currently trading at $4.24 following the recent reverse stock split that allowed the company to comply with Nasdaq listing requirements.

The Fidelity Extended Market Index Fund reported a holding of 242,529 shares, valued at $1,607,967, down from nearly 6 million shares in the prior quarter—a reduction of 95.94%. The position in Nikola is now valued at $1,062,277.

The Fidelity Nasdaq Composite Index Fund reported ownership of just 18,707 shares in Nikola as of August 31, valued at $124,027 representing a 97.23% decrease from the 674,990 shares it held in the previous filing from late July.

The Fidelity Total Market Index Fund disclosed holdings of 66,428 Nikola shares, valued at $440,418, down from 1,942,446 shares—a decline of 96.58%. The current value of this position has dropped to $290,955.

Finally, the Fidelity Series Total Market Index Fund similarly reduced its stake, holding 53,313 shares from a previous 1,419,357, marking a 96.24% decline. The current valuation of this position stands at $233,511.

Written by Cláudio Afonso | LinkedIn | X

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The post Fidelity Cuts Stake in Nikola Across Four Funds first appeared on EV.


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