Nikola Corporation (NKLA -9.41%) The stock plunged 10% in early trading on Monday before recovering somewhat. The fuel cell truck maker filed a Form S-3 with the Securities and Exchange Commission (SEC) this morning outlining its plan to raise $500 million by issuing new notes, convertible bonds and company stock.

Investors, however, do not seem to be enthusiastic about the idea, and at 10:10 a.m. ET, Nikola’s share price is still down 8.3 percent.

How is Nikola stock performing today?

Nikola is starting (fairly) small. In an explanatory 8-K filing, the company described how it will start by selling $80 million in convertible notes and then sell up to $80 million more over the next 18 months if investors approve.

That’s only $160 million so far, but the company’s S-3 filing shows it is asking for permission to expand its cash-raising activities to a “universal shelf” of up to $500 million over the long term.

And here’s the thing: The total market capitalization of Nikola Corporation is currently well below $400 million. So, in essence, Nikola announced today that the company intends to raise so much money in the form of debt, equity, and debt convertible into equity that it could potentially dilute shareholders by more than 50% of their ownership interest in the company (if the convertible notes are ultimately converted into shares of the company).

Is Nikola stock a best seller?

And this would not be an isolated case. Rather, there is a pattern emerging.

The number of Nikola shares has already has grown more than 170% over the past 18 months. With the company currently burning more than $510 million in cash annually, even raising $500 million in new money from this offering likely won’t be enough to get Nikola through another year.

On the contrary, in less than 12 months, investors must expect Nikola to dilute them again. No wonder investors decided to sell Nikola shares today.