Please ensure Javascript is enabled for purposes of website accessibility

Done Deal: VectoIQ's Merger With Nikola Motor Has Closed

By John Rosevear - Jun 3, 2020 at 1:14PM

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

Nikola raised over $700 million in new cash.

VectoIQ Acquisition (VTIQ) said on Wednesday that its much-anticipated merger with electric heavy-truck maker Nikola Motor has closed, a day after its shareholders voted to approve the transaction. 

The deal provides Nikola with more than $700 million in new cash, much of it from a related "PIPE" (private investment in public equity) transaction where investors, including Fidelity Investments and hedge-fund manager P. Schoenfeld Asset Management, bought shares of the combined company at a discounted price. 

A Nikola electric tractor-trailer truck.

Image source: Nikola Motor.

Nikola, founded in 2014 by Trevor Milton, has developed a series of all-electric Class 8 (tractor-trailer) trucks that have attracted considerable interest from the trucking industry as well as investors. One reason for the interest: Nikola's trucks will be offered with choice of a proprietary high-energy-density battery or a hydrogen fuel cell. The company has over 14,000 pre-order reservations for the trucks, representing more than $10 billion in potential sales. 

Nikola expects to begin construction of a factory in Arizona soon and to have the battery-powered trucks in production by the end of next year. The fuel-cell trucks will follow about two years later after Nikola builds out a network of hydrogen refueling stations.

Milton, who has led Nikola since its founding, will remain as the combined company's executive chairman. Nikola president Mark Russell will succeed Milton as CEO, and VectoIQ CEO Stephen Girsky -- formerly vice-chairman of General Motors (GM 0.03%) -- will join its board of directors, the companies said. 

The combined company will operate under the name "Nikola Corporation." Its shares, which more than doubled in value in May as investors rushed to secure positions ahead of the merger, will begin trading under the ticker symbol "NKLA" on Thursday. 

John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. 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.
General Motors Company Stock Quote
General Motors Company
$39.49 (0.03%) $0.01

*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 08/15/2022.

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.