Nikola (NKLA.O) saw a significant drop in its market value on Friday after announcing its fourth CEO in four years and expressing doubts about its future. This news came after shareholders approved a plan to issue more stock, despite concerns about dilution. The company’s Chairman, Stephen Girsky, will take over as CEO immediately. Nikola’s investors approved a proposal to issue more shares, with Girsky stating that it will not entirely dilute equity capital. Prior to this drop, Nikola’s share price had risen by nearly 60% this year.

Nikola has raised concerns about its ability to continue as a going concern for the next 12 months, reiterating this warning for the third time since February. The company is in need of additional capital and is facing supply chain issues and a shift to hydrogen fuel-cell technology. The company also provided a downbeat revenue forecast for the current quarter. Nikola has decided to focus on making battery electric trucks only to order and prioritize hydrogen fuel cell trucks.

In recent months, Nikola has laid off employees and liquidated assets of a recently acquired battery maker. The company’s third-quarter revenue forecast is lower than estimated, and it expects to make 300 to 400 deliveries this year. Other electric vehicle startups have also faced challenges in production, delivery targets, and fundraising.

Fisker, another EV maker, had to reduce its annual production target due to supply chain delays. Nikola, like other companies, has experienced supply bottlenecks and had lower cash reserves compared to the previous year. The company adjourned and rescheduled its shareholder meeting to gain support for the share issuance, which was opposed by founder Trevor Milton.

On a positive note, Nikola reported a narrower second-quarter loss due to lower production costs. The company’s financial situation and leadership changes have raised concerns among investors and stakeholders.