What happened
Shares of VectoIQ Acquisition (VTIQ) closed higher on Tuesday, as the stock resumed its upward run ahead of the closing of its merger with electric big-rig truck maker Nikola Motor. VectoIQ's shares ended Tuesday's session at $25.18, up 15.4%.
So what
Shares of VectoIQ, a special-purpose acquisition company that is set to merge with Nikola Motor next month, have had a wild run since the beginning of May. The stock took a dive last week, but it resumed its upward run on Tuesday.
Why has it had such a crazy run since early May? As some investors see it, this could be a chance to get in on the ground floor of the next Tesla (TSLA -2.04%) -- or, at least, another company that seems well positioned for big growth as the world turns away from internal-combustion engines.
VectoIQ, led by former General Motors (NYSE: GM) vice chairman Steve Girsky, has set out to bring together a group of companies building the future of mobility. The upcoming merger of a VectoIQ subsidiary with Nikola, which has over 14,000 pre-orders for the electric big rigs it will begin building next year, will be far and away its biggest deal to date.
If all goes well, Nikola's electric big rigs will begin shipping in 2021. Image source: Nikola Motor.
Now what
All eyes (or at least, the eyes of auto investors interested in the future of trucking) will be on VectoIQ on June 2, when its shareholders will vote to approve the merger. Assuming it's approved, which seems to be a safe assumption, the merger will close shortly after, VectoIQ's name will change to Nikola Corporation, and its ticker symbol will change to NKLA.
