Shares of VectoIQ Acquisition (NASDAQ:VTIQ) traded lower for a second day on Friday, amid signs that some traders may have been taking profits on a stock that had more than doubled in value since the beginning of the month.
As of 11:45 a.m. EDT, VectoIQ's shares were down about 12.2% from Thursday's closing price, but still up almost 75% since May 1.
It's not surprising that the stock of a small company with a float of just 20.7 million shares would turn out to be volatile after attracting intense interest from investors. VectoIQ is in the process of merging with electric heavy-truck maker Nikola Motor, after which its shares will become shares of Nikola. For tech-focused auto investors who have watched Tesla's (NASDAQ:TSLA) shares reach sky-high levels, this seems like a chance to get in early on another stock that might follow a similar path.
Will it, though? It's impossible to say right now, of course. But we can say that Nikola's electric heavy trucks seem to do a good job of addressing the sticking points that have limited the widespread adoption of electric tractor-trailers until now.
I'm not the only one who thinks so, either: As of early March, Nikola had over 14,000 preorders for its trucks, representing more than $10 billion in potential revenue.
Don't be surprised if the volatility in VectoIQ's stock continues until (and probably after) the merger with Nikola is completed. That's likely to happen next month.
VectoIQ's shareholders will meet (virtually) on June 2 to vote on the transaction. If it's approved, as it likely will be, then the merger will close soon after, probably within a few days. Once it's done, VectoIQ's name will change to Nikola Corporation, and its stock ticker will change to "NKLA."
And after that? We'll find out.