Nikola (NASDAQ: NKLA) shares skyrocketed approximately 22% on Monday as the company announced an order of thousands of all-electric garbage trucks for Republic Services.
“Nikola specializes in heavy-duty, zero-emission Class 8 trucks. The refuse market is one of the most stable markets in the industry and provides long-term shareholder value,” Founder Trevor Milton said in a statement.
The order consists of 2,500 vehicles with the right to add another 5,000 if desired. Nikola strives to begin manufacturing in 2022 and deliver the units by 2023.
“The new platform can give refuse trucks nearly three-times the HP of natural gas and diesel options, giving operators the ability to go up hills with full loads without issue,” Nikola said in an announcement today, “a challenge natural gas vehicle manufacturers have been working to solve.”
Shares rose to USD44.80 per share in morning trading before settling at USD43.23, maintaining an 18% increase.
As orders roll in, Nikola is arranging manufacturing partnerships for several of its models. Furthermore it is working on providing hydrogen fueling stations for all of its semi-trucks.
The Phoenix based zero emissions vehicle production company has chosen not to reveal financial details on the matter but has said that Republic Services did not have to front a down payment in the transaction.
Nikola stated that the order was the biggest “in the waste industry and signals Republic Services’ commitment to zero-emission vehicles.” Amid the recent boost in production, the company has begun to build its own USD600 Million factory in Arizona, set to produce about 35,000 vehicles a year.
Written by Rebecca Urena.
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