Dear NKLA Stock fans, mark your calendars for June 6th

After spending the past two quarters steadily declining, the electric vehicle (EV) maker Nicholas (NASDAQ:NKLA) eventually received a debarment notice after failing to maintain Nasdaq $1 minimum prize requirement. NKLA stock has been on a run to the bottom since January 2023, losing more than 70% of its value year to date (YTD). Although he had issues long before that, the red flags surrounding the NKLA action are increasingly hard to ignore.

Now, the possibility of losing its spot on the Nasdaq looms as Nikola shares plunge to an all-time low. In a last ditch attempt, the electric vehicle maker is asking shareholders to vote on a proposal that could theoretically help it keep moving forward, at least for now. Investors have until June 6, 2023 to vote.

What exactly is Proposition 2 and could passing it actually help Nikola avoid delisting? Let’s take a closer look.

What’s going on with NKLA stocks?

Since breaking below $1 in April, NKLA stock has only gone down in value. This morning, InvestorPlace Contributor Dana Blankenhorn reported that Nikola hit an all-time high after receiving the debarment notice. As of this writing, stocks are down about 2% and show no signs of a rebound.

It’s been months since Nikola has given investors much to be optimistic about. Today, the company is closer and closer to delisting. His vote on Proposition 2 – which would allow Nikola to increase his authorized number of shares – can only be described as a Hail Mary pass.

According to a statement released by the company:

“The approval of this proposal will help ensure that Nikola can continue to move forward to take further steps on the path to pioneering solutions for a zero-emissions world. Without these additional actions, Nikola’s ability to continue its operations and goals ongoing, including Nikola’s need for capital, will be out of reach.

On the face of it, this seems like a great thing for shareholders to vote on, meaning the proposal could pass. However, investors should also see the bigger picture. Even if the company is able to continue trading on the Nasdaq, that doesn’t make NKLA a good buy.

This company has spent the last year proving repeatedly that it cannot demonstrate sustainable growth. Even when the electric vehicle maker has good news to report, shares tend to fall back into the red just as quickly as they have risen. In April 2022, an Evercore ISI analyst also lowered his price target for Nikola from $2 to $1. At the time, the cut seemed severe, but perhaps it wasn’t severe enough.

Although NKLA shares sometimes see the momentum of short-term speculation, it has never been enough to help drive the stock higher. Obviously, even the r/WallStreetBets crowd isn’t interested in trying to save this fallen company.

The road to follow

As noted, Proposition 2 is likely to pass, as investors have a clear incentive to vote in favor of this decision. However, that doesn’t mean Nikola will see any real growth after the vote.

This struggling electric vehicle producer has given investors far too many reasons to bet against stocks. Even if NKLA shares appear in the run-up to June 6, they will likely reverse course just as quickly. Investors have much better options when it comes to this space – even those looking for opportunities in the microcap EV and penny stock categories.

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At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.