Shares of VectoIQ Acquisition (NASDAQ:VTIQ), a holding company that is in the process of acquiring electric-truck maker Nikola Motors, were down sharply on Monday as crashing oil prices and virus concerns drove a broad-based market sell-off.
As of 1:00 p.m. EDT, VectoIQ's shares were down about 11.8% from Friday's closing price.
VectoIQ's shares soared last week after news that the company, led by former General Motors (NYSE:GM) vice chairman Steve Girsky, had agreed to acquire Nikola. Nikola has been preparing to begin production of electric heavy trucks (think tractor-trailers), including models powered by hydrogen fuel cells and by lithium-ion batteries.
Nikola, which has strong technology and partnerships with industry heavyweights, is expected to have a bright future. But it's no surprise that the steep drop in oil prices -- along with the possibility of a recession -- has put a damper on investors' expectations in the near term.
The deal is still expected to proceed: VectoIQ's acquisition of Nikola should close in the second quarter of 2020, after which the combined company will be renamed "Nikola Corporation." That company will trade on the NASDAQ exchange under the ticker NKLA -- but whether investors will be eager for its shares remains an open question for now.