Nikola Corporation ( NKLA ) shares are trading lower in the premarket session on Thursday.

On April 9, Wolfe Research analyst Scott Group initiated coverage on Nikola with a Peer Perform rating.

The analyst highlighted substantial hurdles Nikola might encounter, especially in the medium run. They cited sparse charging infrastructure and steep hydrogen expenses as potential barriers to broad FCEV (fuel cell electric vehicles ) uptake.

While Nikola’s innovative strategies are acknowledged, Wolfe Research foresees ongoing financial challenges for the company.

In an exchange filing dated April 10, the company’s Chairman, Steven M. Shindler, wrote a note highlighting the contentious battle for board seats to stockholders. 

“As you may have seen, M&M Residual, LLC, an entity controlled by criminally convicted former Executive Chairman Trevor Milton, has provided notice of its intent to nominate a slate of Directors,” Shindler said. 

As of a few days ago, only three names have been put forth – Derek Johnson, Hans Peterson, and Dave Sparks, the stockholder note read. 

Milton / M&M Residual has withdrawn two of the five names (Cole Cannon and Paul Southam).

These nominees have no public company experience, no expertise or knowledge in zero-emissions trucking and energy infrastructure, and lack the significant skill sets that the current Nikola Board members bring to the company, according to the exchange filing. 

“The Nikola Board of Directors reviewed the original five Director nominees and rejected the entire slate, and now two have been rejected by Mr. Milton himself,” Shindler added.

Nikola’s shares are declining following the filing, indicating investor concerns over the ongoing boardroom dispute.

According to Benzinga Pro, NKLA stock has lost over 10% in the past year. Investors can gain exposure to the stock via Direxion Moonshot Innovators ETF ( MOON ) .

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The company confirmed that its “ambitious” goal to develop a HYLA hydrogen highway is underway, and it plans to have nine operating refueling solutions in place by mid-2024 and 14 total by the end of 2024.

Price Action: NKLA shares are trading lower by 5.22% to $0.9275 premarket on the last check Thursday.