Nikola Motor Co has gone public after joining publicly traded special purpose acquisition company VectoIQ Acquisition Corp in a merger valued at $3.3 billion it was announced.
NASDAQ-listed Nikola Corp will focus on next generation smart transportation as it looks to accelerate production ahead of building a new production plant in Coolidge, Arizona and infrastructure for its hydrogen station network.
The transaction will likely be funded through VectoIQ’s cash-in-trust and a $AU807.5 million private placement of common stock at $US10 per share led by institutional investors including Fidelity Management & Research Co, ValueAct Spring Fund and P Schoenfeld Asset Management.
The management team of the new company will be headed by Trevor Milton (current Nikola CEO) as executive chairman and Mark Russell (current Nikola president) as president and CEO.
Milton in a statement said he founded the company to completely disrupt the energy and transportation market.
“I knew that Nikola would not be successful if it only sold vehicles like other manufacturers do,” he said.
“Much like Amazon, we knew vertical integration was key. From day one our goal was to integrate the truck and the energy it consumes into a single solution or lease payment. We can now offer an all-in lease rate that can fix the total cost of ownership for seven years," said Milton.
"By signing long-term green energy contracts, we can produce green energy – hydrogen – resulting in a zero emission business model from production to consumption, something no other OEM has been able to achieve.”
Milton also said the recent announcement of the Nikola Badger electric pickup truck will help it accelerate its efforts to get its electric semis in production.
“The Badger will help drive down the cost of our hydrogen fuel cells and other components for our semi truck program,” he said.
“Most automotive suppliers charge a premium on parts for trucks due to lower volumes. But with the Badger, we can combine parts to drive down the cost of each component when possible.”
Last month, Nikola and CNH Industrial announced Nikola Tre battery-electric truck production would take place at IVECO's plant in Ulm, Germany.
Nikola is initially working with customers with dedicated long-haul routes and building hydrogen stations to serve their needs.
It is understood Nikola already has $10 billion worth of reservations for its fuel-cell electric trucks.
Projected revenue for 2021 is $230 million and would skyrocket to as much as $4.6 billion by 2024 according to the company