Nikola & VectoIQ Combine
June 9, 2020
Nikola Corporation closed its business combination with VectoIQ, a
publicly-traded special purpose acquisition company, and Nikola’s
listing on the Nasdaq Global Select Market.
The business combination,
which was approved on June 2, 2020 by VectoIQ stockholders, further
solidifies Nikola as a global leader in zero-emissions transportation
and infrastructure solutions. On June 4, 2020, the combined company’s
shares will trade on the Nasdaq under the new ticker symbol “NKLA.”
The transaction proceeds are expected to accelerate vehicle production,
allow Nikola to break ground on its state-of-the-art manufacturing
facility in Coolidge, Arizona, and continue its hydrogen station
infrastructure roll out.
“Nikola is thrilled to complete the Nasdaq listing and be part of the
ESG investment world. This is a significant endorsement in fuel-cell and
battery-electric technology. Since Nikola launched its first fuel-cell
semi-truck, you have seen the world rally behind hydrogen and follow our
lead. What was once considered the fuel of the future is now accepted as
today’s solution,” said Nikola’s Founder and Executive Chairman Trevor
Milton. “With our Nikola IVECO joint venture and over $10 billion in
pre-order reservations, Nikola is positioned to be a wonderful story of
how one company can literally change the world.”
Stephen Girsky, CEO of VectoIQ Acquisition Corp. added, “The VectoIQ
team and I are proud to support Nikola in its transition to a public
company. It’s an exciting time to be in the zero-emissions
transportation space and Nikola is at the forefront of this technology.
I look forward to continuing to support the company as a member of the
Board, and helping to make Nikola’s vision of a cleaner world a reality.
Congratulations to Trevor and the Nikola team on this milestone, a
definitive step toward a sustainable future. I would also like to thank
the VectoIQ team for their amazing contributions over the past two
years, and tireless work to execute on this transaction.”
The company expects to generate revenue by 2021 with the roll out of its
Nikola Tre Class 8 BEV, followed by the Nikola Two Class 8 FCEV starting
in 2023. The build out of hydrogen fueling stations will serve Nikola
customers’ fleets, such as Anheuser-Busch.
In addition to Milton, Nikola will continue to be led by its seasoned
management team including Chief Executive Officer, Mark Russell; Chief
Financial Officer, Kim Brady; Chief Legal Officer, Britton Worthen and
Chief Human Resources Officer, Joseph Pike.
Cowen served as sole financial advisor and lead capital markets advisor,
and Greenberg Traurig, LLP served as legal advisor to VectoIQ. Deutsche
Bank Securities Inc. served as an additional capital markets advisor to
VectoIQ. Morgan Stanley served as financial advisor, and Pillsbury
Winthrop Shaw Pittman LLP served as legal advisor to Nikola.
Nikola also signed a purchase order with Nel ASA, for 85-megawatt
alkaline electrolyzers supporting five of the world’s first 8 ton per
day hydrogen fueling stations. Together, these electrolyzers may produce
over 40,000 kgs of hydrogen each day.
The purchase order has a value in excess of USD $30 million, and the
electrolyzers will primarily be delivered from the new electrolyzer
mega-factory currently under development in Norway. This purchase order
will support Nikola’s five initial stations with 8 ton per day hydrogen
production capacity. The remaining equipment will be covered by a
separate purchase order that is expected to be finalized within the
“We are building the largest hydrogen network in the world and I
couldn’t be prouder to have Nel part of it,” said Trevor Milton, Nikola
Corporation’s founder and executive chairman. “These electrolyzers will
support five heavy duty hydrogen stations which will cover multiple
states and trucking routes. The future of clean transportation is here,
and fleets are lining up to be part of the transition with Nikola.”
The framework agreement was one of the key triggers for Nel deciding to
develop it’s alkaline electrolyzer mega-factory in Norway and has
enabled Nikola to reserve capacity in the new plant.
very excited to have reached this landmark milestone with Nikola
Corporation. Since our partnership began in 2017, we have been working
together to develop a massive large-scale hydrogen fueling station. It’s
been amazing to see the significant progress made by the Nikola team
specific to vehicle development and the station design, and now we are
ready to start building,” says Jon André Løkke, chief executive officer
Finally, Nikola and Ryder System have mutually agreed to terminate their
exclusive partnership with respect to the hydrogen electric semi-trucks.
As a result, both companies are able to explore emerging opportunities
within the rapidly growing commercial transportation industry. Nikola
and Ryder view this decision positively and are both now open to
business arrangements with other partners as the industry continues to
“Ryder has been incredible to work with and they have been with us since
late 2016,” says Trevor Milton, CEO Nikola Corporation. “As the market
evolves, each of us are now free to expand our operations to other
partners, something the previous agreement did not allow us to do. We
look forward to finding ways to continue to work with Ryder in the
future as a customer and have found them to be a great partner.”