Nikola shares fall to new low on Wedbush downgrade, analyst says stock too risky to own - CNBC

The company's stock price has been roughly cut in half following fraud allegations made two weeks ago in a report by short-selling firm Hindenburg Research.

Wedbush cited the controversy around the company as well as the resignation on Monday of Nikola founder Trevor Milton as making the stock too risky to own.

"The Nikola story changes with Trevor Milton gone from the company," Wedbush analyst Dan Ives wrote in an investor note Thursday morning.

"Despite the controversy and noise surrounding Milton, he was the visionary, architect and internal/external force driving Nikola for the coming years and we believe he leaves a huge void that is hard to replace.".

Hindenburg Research accused Milton of making false statements about the company's technology to attract investors and deals with other automakers.