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Nikola founder blocks stock proposal, Paul Pelosi takes stake in Nvidia ahead of key chip bill

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Yahoo Finance Live anchors discuss EV maker Nikola failing to win shareholder approval to raise new funds and Paul Pelosi taking stake in Nvidia ahead of key chip manufacturing bill vote.

Video Transcript

[MUSIC PLAYING]

BRAD SMITH: You're watching Yahoo Finance Live. Everyone, let's get to-- cut for time. We've got two stories today, one minute each, and we start with this. EV maker Nikola adjusting-- or adjourning, rather-- its shareholder meeting for the third time with no movement on issuing new stock after former CEO Trevor Milton voted his 20% stake against this proposal. Now Proposal Two-- we should lay out exactly what this means here-- Proposal Two basically allows for Nikola to increase the number of shares that are authorized of common stock to 800 million.

Now that would give the company essentially greater flexibility to support the future growth and development of the business. What's also important to note is how many shares that Trevor Milton actually owns, which is about 90 million shares here, which is essentially a 20% stake in the company, which gives him the authority to basically block any type of movements that the company would try to be putting forward here, unless the majority-- the lion's share-- of the outstanding shares and those holders actually vote against whatever Trevor Milton has--

- Right. Well, this would dilute the value of his shares. That's why he doesn't want it to happen.

BRAD SMITH: Exactly.

- And the company says it's not in immediate need of cash, but it needs that-- it wants that financial flexibility from issuing more shares. So presumably they'll keep trying, and maybe eventually--

[BUZZ]

--they'll get his approval.

BRAD SMITH: Right.

- We shall see. All right-- and I think we buzzed, although I didn't hear it. I saw the clock go away. Chipmaker Nvidia is seeing as much as 5 million of its shares snapped up by Paul Pelosi ahead of a vote on a key chip manufacturing bill. If the last name Pelosi sounds familiar, that's because yes, he is indeed Nancy Pelosi-- the Speaker of the House-- husband. And he is allowed, under the rules, to do this. It just raises eyebrows at times when you see disclosures like this.

He purchased between $1 and $5 million worth of Nvidia stock on June 17. I mean, I don't know what he could know about the chip bill that nobody else knows, right? In other words, we all know that it's up for debate.

BRAD SMITH: Right.

- We know that it has a decent chance of passing. And on a personal basis, I'm much more concerned about other types of money in politics than Paul Pelosi buying Nvidia stock. In other words, where corporate money goes, for example, than individual money. But I don't know.

BRAD SMITH: This was a bill that was signed in terms of combating some of the insider trading that is taking place, and has its own disclosures that need to be put forth through filings from members of Congress. This was signed into place back in 2012. So much has changed drastically about the broader trading scenario, either about the types of assets that are out there, and the number of rulings that are coming forward to really shape the future of these very--

[BUZZ]

--innovative sectors of the broader economy and industries. So yeah, there needs to be more reform around that. I mean, if I am saying-- if it was my opinion, if I had anything to do about it. But I am just a mere voter out here in these streets.

- Hey, you can run! You can run for something! Brad Smith for something.