Nikola (NASDAQ:NKLA) news for Monday concerning orders for its electric trucks have NKLA stock heading higher.
The order comes from waste collection company Republic Services (NYSE:RSG) and includes 2,500 vehicles. It also allows the company to increase the order of electric trucks to 5,000 and testing is set to begin in 2022.
Nikola notes that the garbage trucks for Republic Services will feature 720kWh batteries. This should allow each truck to travel for 150 miles and collect 1,2000 cans of trash with just a single charge.
The Nikola news release also points out that the electric trucks will outperform their diesel and gas counterparts. The powertrain will be limited to 1,000 horsepower, which will be nearly triple what gas and diesel garbage trucks can do.
Nikola says that this higher horsepower should eliminate some troubles that typical garbage trucks have to deal with. For example, these electric trucks should have no problem climbing hills with a full load of trash.
Mark Russell, CEO of Nikola, said this about the electric truck news.
“This is a game changer. 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 expects full production deliveries of its electric trucks to Republic Services will take place in 2023. Financial details of the deal were not revealed.
NKLA stock was up 22.1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.