Electric truck maker Nikola is planning to sell its own shares at a 20% discount to their lowest ever price

• Nikola is planning to raise $100 million by selling its stock at a huge discount.
• The electric truck manufacturer said Thursday that it would sell shares at $1.12, or 20% below their lowest ever price.

Nikola is planning to raise an extra $100 million through a stock offering – by selling its shares at a big discount to their lowest ever market price.

The electric truck manufacturer said in a statement Thursday that it planned to raise the $100 million by selling 29.9 million shares to the public and another 59.4 million shares to an unnamed investor.

It's pricing the shares at just $1.12 as part of the stock offering, a 20% discount to the all-time low of $1.40 they had fallen to by Thursday's closing bell.

Nikola has been plagued by problems since September 2020, when activist investor Hindenburg Research said it was shorting the stock because the company had exaggerated and misrepresented its products.

Nikola shares have cratered around 95% since Hindenburg released its first report into the company on September 10.

In October 2022, the company's founder Trevor Milton was convicted of fraud after he was found to have lied about Nikola's technology to drive up its share price.

The company said earlier on Thursday that it planned to sell $100 million worth of stock to the public and another $100 million to an unnamed investor, but later backtracked to say it would raise $100 million split between the two sales.

Citigroup will underwrite the follow-on offering, and Nikola said it will use the money it raises for working capital and other corporate purposes.

Nikola shares fell 6% to around $1.32 in premarket trading ahead of Friday's opening bell.