Please ensure Javascript is enabled for purposes of website accessibility

Why VectoIQ Stock Is Rising Today

By John Rosevear - Updated May 26, 2020 at 12:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shareholders are set to vote on a crucial merger next week.

What happened

Shares of VectoIQ Acquisition (VTIQ) were up on Tuesday, as the stock continued to gain momentum ahead of an expected merger with electric-semi maker Nikola Motor next month.

As of 12:45 p.m. EDT, VectoIQ's shares were up about 11.2% from Friday's closing price.

So what

There's no big news to report, aside from the news that everyone watching this stock probably knows: The company's proposed merger with Nikola appears to be on track for approval at the special meeting of shareholders set for June 2. That said, VectoIQ did issue a press release this morning, in which it reminded its shareholders to vote and return their proxy cards before the meeting. 

That's not exactly market-moving stuff, but this company's shares don't seem to need much to get rolling. Even with some dramatic volatility, VectoIQ's share price has more than doubled since the beginning of May.

VTIQ Chart

VTIQ data by YCharts.

Why the big run? As some auto investors see it, this is a chance to get in early on a stock that might become the next Tesla (TSLA -1.17%). Nikola has over 14,000 preorders for its all-electric tractor-trailer trucks, which it plans to begin producing next year. 

A Nikola electric semi.

Nikola's battery-electric semi will go into production next year. A version powered by a hydrogen fuel cell will follow in 2023. Image source: Nikola Motor.

Now what

All eyes will be on VectoIQ at 11 a.m. EDT on June 2, when the company holds the special meeting of shareholders to vote on the proposed merger. Assuming it passes (which seems very likely as of now), the company's name will change to Nikola Corporation and its ticker symbol to NKLA.

And after that? We'll find out soon. 

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VectoIQ Acquisition Corp. Stock Quote
VectoIQ Acquisition Corp.
Tesla, Inc. Stock Quote
Tesla, Inc.
$908.93 (-1.17%) $-10.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.