This paper proposes an observer-based formation tracking control approach for multi-vehicle systems with second-order motion dynamics, assuming that vehicles' relative or global position and velocity measurements are unavailable. It is assumed that all vehicles are equipped with sensors capable of sensing the bearings relative to neighboring vehicles and only one leader vehicle has access to its global position. Each vehicle estimates its absolute position and velocity using relative bearing measurements and the estimates of neighboring vehicles received over a communication network. A distributed observer-based controller is designed, relying only on bearing and acceleration measurements. This work further explores the concept of the Bearing Persistently Exciting (BPE) formation by proposing new algorithms for bearing-based localization and state estimation of second-order systems in centralized and decentralized manners. It also examines conditions on the desired formation to guarantee the exponential stability of distributed observer-based formation tracking controllers. In support of our theoretical results, some simulation results are presented to illustrate the performance of the proposed observers as well as the observer-based tracking controllers.