Nikola plans to go public as the first zero-emission truck companyMarch 11, 2020
The Arizona-based EV manufacturer is merging with VectoIQ, a publicly listed acquisition firm.
Electric zero-emission truck startup Nikola has announced its intentions to go public as it merges with an already publicly traded acquisition company, VectoIQ.
The strategy isn’t unlike the one used by the Virgin Galactic space company during the last half of 2019.
The merger is expected to be finalized in Q2 2020. Once it is complete, it will be listed on the NASDAQ exchange under the NKLA name. At that time, it will become the first publicly listed zero-emission truck company. Moreover, it will also receive $525 million in new investment, which will double its current stockpile which it accumulated throughout three funding rounds as well as funding for a joint venture it launched in Europe.
The company has developed big rigs powered by both battery and hydrogen fuel. The company got started with hydrogen fuel cell vehicles in 2015 from the time it was first founded. Several electric vehicle companies such as Tesla, Freightliner, Daimler and others are working on various types of all-electric trucks. That said, Nikola is currently the only company focused on big rigs powered by hydrogen fuel cells.
The startup has developed three different types of zero-emission truck powertrains.
Whether big rigs get on the road powered by hydrogen fuel cells, electric batteries or something else, eliminating emissions from these vehicles could make a substantial difference in the amount of pollution the transportation sector adds to the environment.
Of the three Nikola powertrains, two of them were developed with hydrogen fuel cell technology with intentions for U.S. and European market mass production. However, Nikola has also come up with a battery powered tractor trailer, too. That type is meant for companies that don’t require their vehicles to travel as far as the hydrogen fuel powered variety between recharging.
Hydrogen fuel shows considerable potential in zero-emission transport trucks, even as the technology has not seen widespread adoption in the consumer vehicle market. The reason is that investments into the refuelling infrastructure necessary for that type of vehicle to be practical has been quite limited. On the other hand, Tesla and other electric vehicle companies – as well as a number of clean energy groups and governments – have been expanding their networks of recharging stations.