Shares of Nikola Corp. increased by as much as 22% on Monday morning after the company confirmed an order for thousands of electric waste trucks for Republican Services.
The order includes 2,500 electrified chassis, with the option to increase the order to 5,000 units, the aspiring zero-emission manufacturer said in a release. The company expects that the making and testing of the trucks will be early 2022, followed by deliveries in 2023.
The company’s shares jumped 22% in the morning trading to an intraday high of $ 44.80 per share before retrenching to $ 41 a share, or about 12%.
The announcement of a commercial order is one of three milestones Nikola investors promised it would deliver this year. The others are collaborating to produce its all-electric Badger pick-up and hydrogen filling stations for its semi-trucks.
Nikola’s founder and CEO, Trevor Milton, said in a statement that the “road market is one of the most stable markets in the sector and offers long-term value to shareholders.”
Nikola says the truck is expected to offer up to 150 miles on a single charge, according to a release. The truck is expected to outperform its current competitors in diesel and natural gas, according to the company.
CEO and founder of the American Nikola, Trevor Milton speaks during the presentation of its new full-electric and hydrogen fuel-battery trucks in collaboration with CNH Industrial, at an event in Turin, Italy on December 2, 2019.
Massimo Pinca | Reuters
Nikola said the order is the largest “in the waste industry and signals Republic Services’ commitment to zero-emission cars.”
“This is a game-changer,” Nikola CEO Mark Russell said in a release. “Truck refusal customers have always ordered chassis from truck OEMs and bodies from other suppliers. Nikola has fully integrated the chassis and body, and both cover with one factory warranty.”
Nikola went public on June 4 after a reverse merger with VectoIQ, a publicly traded specialty company led by former General Motors Vice President Stephen Girsky. The stock has been a rollercoaster ride ever since.