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Nikola stock soars after securing garbage truck deal

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Image via Nikola Corp

By Jeremy J. Zacharias

Nikola Motors made headlines on Monday, August 10, 2020, after the firm finalized a lucrative order for at least 2,500 electric garbage trucks for Republic Services, a waste management company fully committed to a zero-emissions future. This contract, which represents the largest single order in the waste management industry, will task Nikola Motors to develop and deliver a fleet of electric garbage trucks over the next three years. If Nikola can deliver on this contract, this contract could expand to 5,000 units, according to Nikola’s official statement, found here: https://nikolamotor.com/press_releases/nikola-receives-landmark-order-of-2500-battery-electric-waste-trucks-from-republic-services-91.

According to Nikola CEO, Mark Russell, “This is a game changer.” Russell further stated that “refuse truck customers have always ordered chassis from truck OEMs and bodies from other suppliers. Nikola has fully integrated the chassis and body, covering both with a single factory warranty. Trucks will include both automated side loaders and front-end loaders — all of which will be zero-emission.”

Nikola is tentatively scheduled to begin full production deliveries in 2023 with on-road testing likely to begin in early 2022. The garbage trucks are anticipated to carry up to an industry-leading 720kWh of energy storage with the powertrain software limited to 1,000 HP. The proposed Nikola trucks are anticipated to provide nearly three times the horsepower output of their natural gas and diesel competitors. According to Nikola’s press release, the increased power will allow the Nikola trucks to go up hills with full garbage loads without issue, which has been a hindrance to natural gas truck manufacturers.

Nikola’s announcement on Monday led to a one day 22% increase in Nikola stock, which points towards greater investor confidence in the future of this electric truck manufacturer. With Nikola’s electric garbage truck set to annihilate diesel and natural gas options in both horsepower and torque, Nikola will truly be the quickest trashcan on wheels.

 

 

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