Nikola fell 18% on Tuesday, the same day a lockup period for insiders to sell their shares expired.
The expiry of the lockup period means Nikola insiders are now able to sell any shares of Nikola that they hold.
There are 166 million shares that insiders and early investors are now eligible to sell, including founder Trevor Milton's 91.6 million share stake.
According to Nikola's third quarter 10-Q filing with the SEC, 161 million shares are eligible for sale today, while another 5 million shares could become eligible for sale depending on the price of Nikola's stock.
Milton's stake was worth $1.9 billion as of Monday's closing price, and is the biggest stake of any Nikola investor.
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Milton voluntarily stepped down from the company as chairman in late September, after a short-seller report from Hindenburg Research alleged that Milton and Nikola deceived investors. Nikola dismissed many of the claims raised in the report.
The announcement of the long-awaited deal sent Nikola shares into a tailspin, falling as much as 25% after it was revealed that General Motors would not longer make a $2 billion investment in the start-up trucking company, nor would it work with the company to develop and manufacture its Badger pickup truck.
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