Photo courtesy: Nikola Corp.

Nikola Corporation (NKLA) CEO Trevor Milton said he is giving six million of his own shares in the electric vehicle firm to the first 50 employees, making good on a promise he made to them when they were hired.

What Happened: The chief executive announced the share largesse on social media Wednesday.

 

The six million shares are worth close to $233 million as of Wednesday’s closing. The automaker debuted on the Nasdaq Stock Market in June through a reverse merger with VectorIQ Acquisition, a blank check company. 

Nikola shares have surged nearly 277% YTD and the company is valued at $14.7 billion.

Why It Matters: The EV maker’s focus is on heavy-duty freight and hydrogen-powered battery vehicles. The company is aiming to mirror the success of Tesla Inc’s TSLA charging network but with a web of hydrogen-refueling facilities.

Wedbush analyst Daniel Ives assigned a Neutral rating with a $45 price target on Nikola and believes if the company could stay true to its roadmap, it could justify its valuation.

The Phoenix-based automaker is reportedly due to unveil its Tre BEV truck on September 24, while its Badger pickup is scheduled for unveiling in Dec. 2020. 

The automaker reported a net loss of 33 cents per share in its second quarter compared with 6 cents per share in the same period last year. 

On July 22, the company issued a notice of redemption of public warrants and expected to raise $264.5 million in cash through 23 million outstanding warrants at $11.50 per piece.

Price Action: Nikola shares closed nearly 0.9% lower at $38.82 on Thursday.