Exploring Nikola Corporation (NKLA) Investor Profile: Who’s Buying and Why?

When you look at Nikola Corporation (NKLA), the investor profile tells a story of high-stakes conviction that flies directly against the typical institutional playbook. Are you seeing a contrarian opportunity or a cautionary tale?

Honestly, the numbers are stark: as of October 2025, institutional ownership sits incredibly low at just 0.56% of shares outstanding, yet insider ownership is a significant 11.56%. That's a huge disparity, suggesting the people closest to the product are holding on while the big funds largely stay away. This dynamic is especially interesting following the Q4 2024 earnings report (released in October 2025), which showed revenue of only $4.86 million.

Who is buying, and why are they willing to bet on the hydrogen and battery-electric truck maker when the market cap is under pressure? You have to ask yourself: are the Antara Capital LPs and Nomura Holdings, Inc.s of the world seeing a deep-value turnaround, or are retail investors and insiders carrying the weight of a highly speculative growth story?

We're defintely going to break down who is holding the bag, and what their investment thesis must be to justify the risk.

Who Invests in Nikola Corporation (NKLA) and Why?

The investor profile for Nikola Corporation (NKLA) is a study in extreme risk, shifting from a high-growth institutional darling in 2020 to a highly speculative, retail-driven play on the OTC market following the company's Chapter 11 liquidation approval in September 2025. You are defintely looking at a distressed asset, not a growth stock.

The direct takeaway is that the remaining investors are betting on a miraculous turnaround from the liquidation, with a tiny fraction of institutional capital still holding a residual stake. This is a high-stakes gamble where the probability of bankruptcy was recently cited as 100%.

Key Investor Types: The Speculator's Club

The ownership structure for Nikola Corporation (now trading as NKLAQ on the OTC market) is heavily skewed away from traditional institutional money. Institutional ownership stands at a meager 0.03% of shares outstanding, an almost non-existent figure for a company that was once a market darling. This low level shows that most major funds have exited their positions.

The remaining investors fall into three clear, albeit high-risk, categories:

• Retail Investors: These are the true believers, often seeing the stock as a potential multibagger, meaning a stock that could return multiples of the initial investment if a turnaround happens. They are betting on the company's core technology surviving the liquidation process.
• Residual Institutional Holders: A few institutional funds, such as Legal & General Group Plc and Van Eck Associates Corp, still hold positions. These holdings are often passive, or they are funds specializing in distressed debt and deep-value plays, holding a fraction of the total shares-only 85,122 shares were held by 11 institutions in one recent filing.
• Hedge Funds (Net Short): While some hedge funds hold shares, the net sentiment is bearish. Hedge fund net calls (bullish bets) were negative, at -$13.8 million. They are more interested in the volatility of the stock for short-term trading than the long-term equity value.

Investment Motivations: The Hydrogen Dream vs. Financial Reality

The core motivation for anyone still holding Nikola Corporation (NKLAQ) is a bet on the long-term viability of its hydrogen fuel cell electric vehicle (FCEV) technology, specifically its hydrogen refueling network, HYLA. The investment thesis, which was the foundation of the stock's initial hype, centers on a future where Nikola is a key player in the decarbonization of commercial freight, as detailed in the Mission Statement, Vision, & Core Values of Nikola Corporation (NKLA).

For the remaining investors, the motivation is purely speculative: they are banking on the company's ability to execute on its previous turnaround plan, which included reaching a positive cash contribution margin on every truck in 2025. Analysts, before the liquidation filing, projected 2025 revenue to roughly triple to $406.5 million. This number represents the 'dream' scenario that keeps the retail base engaged, even though the liquidation makes it highly unlikely.

Here's the quick math on the risk: the company reported a net loss of $966.3 million in 2023, and while the 2025 revenue projection was hopeful, the negative discounted cash flow (DCF) of -0.249 shows the market's deep skepticism about the intrinsic value of the business.

Investment Strategies: All or Nothing

The typical strategies seen in Nikola Corporation's investor base are not the kind of long-term, buy-and-hold strategies you see in a BlackRock portfolio. They are driven by volatility and a high-risk appetite.

• Distressed Value Investing: A few sophisticated investors are treating the stock as a distressed asset, hoping to profit from the Chapter 11 process if a favorable restructuring or asset sale occurs. They buy in at the penny stock price (the stock was trading around $0.18 in May 2025) for massive upside potential, knowing the downside is a total loss.
• Short-Term Trading: The stock's high volatility attracts day traders and swing traders. The Average True Range (ATR) indicates large price movements are possible in the short term. They are trading the news, not the fundamentals.
• Short Selling: The stock remains a favorite target for short sellers. The short interest ratio-the number of days it would take short sellers to cover their positions-is high at 59.9. This indicates a strong, sustained bearish sentiment from professional traders who believe the stock price will continue to fall.

The investment landscape here is brutal and binary. You either get a massive return from a successful restructuring, or you lose everything in the liquidation. The average analyst price target of $5 for 2025 shows the potential reward, but the Chapter 11 filing is the ultimate risk.

Finance: Monitor NKLAQ news for any updates on the Chapter 11 proceedings and asset sales by the end of the month.

Institutional Ownership and Major Shareholders of Nikola Corporation (NKLA)

You're looking at Nikola Corporation (NKLA) and wondering who the big players are, and honestly, that's where the real insight often lies. The institutional investor profile-think mutual funds, pension funds, and major banks-tells you a lot about the market's conviction, or lack thereof, in a stock. For Nikola, the picture in the 2025 fiscal year is one of significant volatility and a shifting base, which is defintely something to watch.

As of early 2025, institutional ownership was relatively low compared to more established companies, but the major holders still command serious attention. These large investors, who file their positions in 13F reports with the Securities and Exchange Commission (SEC), hold a total of around 85,122 shares as of a February 2025 report, though that number is fluid given the stock's recent movements.

The top institutional investors in Nikola Corporation (NKLA) as reported in early 2025 include:

• Toronto Dominion Bank: Held 4,435,709 shares with a market value of approximately $5.28 million as of February 2025.
• Norges Bank: Held 3,545,693 shares with a market value of around $4.22 million as of February 2025.
• Antara Capital LP: Held 3,171,820 shares as of March 2025.
• Millennium Management LLC: Held 683,270 shares as of February 2025.
• Geode Capital Management LLC: Held 599,838 shares as of February 2025.

Recent Ownership Changes: High Volatility and Mixed Signals

The near-term changes in institutional ownership are where the story gets interesting, and frankly, a bit messy. Looking at the data from the first half of the 2025 fiscal year, you see a clear split: some funds are aggressively selling down their positions, while others are making massive, high-conviction bets on a turnaround. This isn't a passive investment base; it's a battleground.

Overall institutional ownership showed a slight decline of -0.86% as of September 2025, but the individual fund movements are much more dramatic. For example, Millennium Management LLC cut its stake by a huge -49.3% in the February 2025 reporting period. That's a strong signal of lost conviction.

But on the flip side, you have funds making huge increases, suggesting a belief that the stock has bottomed or that the company's hydrogen and battery-electric truck strategy is finally gaining traction. Canada Pension Plan Investment Board, for instance, dramatically increased its position by +840.0% in February 2025, and XTX Topco Ltd. increased its holdings by +711.6% in the same period.

Here's the quick math: when you see a fund jump in with an over 700% increase, they're not dipping a toe; they're buying the dip hard. This mixed activity highlights the speculative nature of the stock right now. If you want a deeper dive into the company's foundation, you can check out Nikola Corporation (NKLA): History, Ownership, Mission, How It Works & Makes Money.

The Role of Institutional Holders in Strategy and Price

These large investors play a crucial, two-fold role in Nikola Corporation (NKLA). First, they provide necessary capital and liquidity. Second, they exert pressure on management and strategy, especially as the company navigates a challenging financial landscape.

Their buying and selling directly impacts the stock price. When a major holder like Toronto Dominion Bank or Norges Bank makes a move, it can create significant price swings. For a stock trading at low levels, every institutional trade is amplified. The disclosure in July 2025 that Nikola was looking to sell up to $100 million in shares through an at-the-market offering, a move often used to raise working capital, immediately caused the stock to drop nearly 6%.

This is where the rubber meets the road: institutional support is critical for a capital-intensive business like an EV/hydrogen truck manufacturer. Their continued, albeit volatile, presence is a lifeline. When they increase their stake, it signals approval of the strategic direction-like the shift toward hydrogen fuel cell electric vehicles (FCEVs). When they sell, it forces the company to reconsider its cash position and potentially make difficult decisions, such as the voluntary Chapter 11 sale process initiated in February 2025 for a part of the business, as reported in the news.

What this estimate hides is the sheer amount of dilution that has occurred, which is a major concern for all shareholders. The institutional investors who remain are betting on the long-term execution of the hydrogen infrastructure plan, which is a high-risk, high-reward proposition.

Key Investors and Their Impact on Nikola Corporation (NKLA)

The investor profile of Nikola Corporation (NKLA) is a study in high-risk, high-reward speculation, now heavily influenced by the company's February 19, 2025, Chapter 11 bankruptcy filing and its subsequent trading as NKLAQ. You are looking at a stock where institutional conviction is low, but the potential for a distressed asset turnaround still attracts specific capital.

Institutional ownership stands at a relatively low 37.38% of shares outstanding, a figure that reflects the extreme volatility and fundamental risks. This is not a stock dominated by the BlackRock-style mega-funds, but rather by specialized capital and hedge funds willing to navigate the restructuring process.

• Antara Capital LP: Held a significant stake, reported at 2.66% as of March 30, 2025, positioning them as a key player in the debt and restructuring discussions.
• Nomura Holdings, Inc.: A smaller, but notable institutional holder with 0.33% of shares reported around the same time.
• Van Eck Associates Corporation: A major asset manager, holding a reported stake of 0.03% as of June 29, 2025, which represents a passive, long-term or index-driven allocation.

Investor Influence: The Chapter 11 Catalyst

The most profound influence on Nikola Corporation (NKLA) is not a single activist investor, but the collective pressure of capital preservation that led to the February 19, 2025 Chapter 11 bankruptcy filing. This move, initiated by the company and its subsidiaries, immediately shifted the power dynamic from common shareholders toward debt holders and the bankruptcy court.

The filing itself is the ultimate act of investor influence, signaling that the existing capital structure was unsustainable. This is a clear action: the company is now pursuing a Section 363 sale process, meaning the business's future is being decided by those with claims on its assets, not by a shareholder vote. For common stock holders, this dramatically increases the risk of a total loss of investment.

Here's the quick math on the financial context: Analysts project Nikola Corporation (NKLA) will generate approximately $406.5 million in revenue in the 2025 fiscal year, yet they also forecast a steep net loss of $493 million. This huge cash burn is what forced the restructuring. The company's goal of reaching a positive cash contribution margin on every truck and turning positive on the EBITDA level in 2025 is now a target for the reorganized entity.

Recent Moves and the Founder's Shadow

Beyond the Chapter 11 filing, two other major events in 2025 show the enduring, complex influence of both the company's past and its current legal reality. First, Nikola Corporation (NKLA) agreed to a settlement with investors in March 2025 to resolve claims of securities fraud from 2016-2023, a direct consequence of the legal scrutiny that followed the initial hype.

Second, the founder, Trevor Milton, remains a figure of note. Following his conviction and a subsequent presidential pardon in March 2025, he re-emerged in the corporate world, taking on a CEO role at SyberJet Aircraft in October 2025. While no longer an executive at Nikola Corporation (NKLA), his legal saga and public presence continue to be a sentiment overhang, reminding the market of the company's turbulent origins.

The last reported earnings, Q4 2024 (reported on October 9, 2025), showed the immediate financial struggle, with revenue coming in at just $4.86 million and an EPS of -$2.66. This is why the focus is on the sale process: the numbers show the business needed a hard reset. You can read more about the company's strategic goals here: Mission Statement, Vision, & Core Values of Nikola Corporation (NKLA).

The table below summarizes the critical financial outlook and key investor-related events for the 2025 fiscal year:

For you, the investor, the immediate action is to understand the Chapter 11 process. The risk is defintely near-total loss, but the opportunity is a highly speculative bet on the value of the underlying assets in the sale process.

Market Impact and Investor Sentiment

You're looking at Nikola Corporation (NKLA) and trying to figure out if the big money is buying in or heading for the exits. The short answer is that institutional investor sentiment is deeply divided, leaning toward a cautious 'Hold' or 'Sell,' but the stock remains highly reactive to any positive news. This mixed signal is the classic profile of a high-risk, high-reward turnaround play.

The overall market sentiment is best described as bearish, which is reflected in the high short interest ratio-a measure of how many days it would take short sellers to cover their positions-which sits at a staggering 59.9. To be fair, short interest did recently decrease by 1.15%, a small sign that some bears are taking profits or reducing their bets. Still, the company's stock was trading near $0.00 as of November 2025, a dramatic drop from its 2020 peak, which shows the long-term pain investors have faced. Honestly, this stock is not for the faint of heart.

The Institutional View: Who's Buying and Why?

Despite the overall bearish tone, a core group of institutional investors is still holding, or even increasing, their positions. They see the hydrogen fuel cell electric truck (FCEV) business as a legitimate, albeit capital-intensive, opportunity. The total institutional ownership is around 37.38% of the stock, which is significant for a company facing such existential challenges.

Here's the quick math on some key institutional bets as reported in early 2025:

• Toronto Dominion Bank held 4,435,709 shares, representing 7.287% of the company's ownership as of February 2025.
• Norges Bank held 3,545,693 shares, accounting for 5.825% of ownership in February 2025.
• Antara Capital LP held 3,171,820 shares, or 2.66%, as of March 2025.

These large positions suggest a belief in the long-term hydrogen strategy, especially with the company focusing on the California market and its zero-emission regulations. They are betting on execution over past missteps. For a deeper dive into the company's financial stability, you should check out Breaking Down Nikola Corporation (NKLA) Financial Health: Key Insights for Investors.

Recent Market Reactions to Ownership Shifts

The stock market's response to any news-good or bad-is extreme volatility. This is a common feature of low-priced stocks with a high retail investor following, often referred to as a penny stock (a security trading for less than $5 per share). For example, in February 2025, the stock price gained a massive 41.44% in a single trading day, rising from $0.542 to $0.766. The price fluctuated by 52% that day.

This kind of swing isn't driven by fundamental shifts; it's a reaction to short-term news, like a new analyst rating or a small production update. It tells you that the stock is highly susceptible to momentum trading and short squeezes, which is why you see such dramatic, short-lived price moves. The big institutional moves, like a major fund initiating a large position, tend to be slower and less visible, but they provide the underlying support that prevents a complete collapse.

Analyst Perspectives and the Path to Profitability

Wall Street's formal consensus rating on Nikola Corporation (NKLA) is generally a 'Hold,' though the average analyst price target in late 2024 was around $5.00, which represented a massive upside from the then-current trading level. Baird initiated an 'Outperform' rating, and Bryan, Garnier & Co. initiated a 'Buy,' with a $1.00 target price.

The optimism hinges on the company's ability to hit its 2025 financial targets. Analysts project Nikola's 2025 revenue to be around $612.97 million. This is a crucial number. The company itself is aiming for a positive cash contribution margin on every truck as it moves into 2025, and hopes to turn positive on the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) level.

Here's what the analyst estimates imply for the near-term:

What this estimate hides is the dilution risk. Analysts estimate the company will have approximately 1.6 billion shares outstanding by the end of 2025. This massive share count, up from 990 million, is how the company funds its losses, but it eats into any potential per-share gains. The key action for you is to monitor quarterly delivery numbers and the cash burn rate. If they can sell every truck they can build, as the CEO suggests, the stock will react defintely.

Finance: Track the Q4 2025 earnings release on the projected date of 10/29/2025 for a hard look at the revenue and cash burn trend.