The once controversy-ridden electric truck company Nikola (NASDAQ:NKLA) is continuing its comeback campaign today. NKLA stock is up nearly 2% today on news that Saia Freight (NASDAQ:SAIA) company has signed a letter of intent (LOI) to buy or lease up to 100 electric trucks. This comes after a blockbuster few weeks for Nikola, fueling rumors of a turnaround following a bumpy 2021.
What do you need to know about Nikola’s latest power play?
The LOI details were undisclosed, but they allow Saia the option to acquire Nikola’s Tre heavy-duty battery-electric trucks. The vehicles are expected to be delivered between 2022 and 2024, with an initial 25-truck target for this year. Investors appear hesitantly optimistic, as NKLA shares were up more than 4% pre-market, but have cooled off a bit since. Conversely, Saia stock has trended about even so far today, up just 0.16% at the time of writing.
Nikola has entered the new year with vigor after a string of strong partnerships. Investors are clearly still hesitant on this once-fringe stock, but Nikola continues to give reason to hold out hope.
Can the EV Truck Firesale Reclaim NKLA Stock?
Interestingly, this isn’t even Nikola’s first deal of its kind this week. Just yesterday, the electric vehicle (EV) maker announced a similar LOI agreement with USA Trucks (NASDAQ:USAK). Like the Saia deal, the LOI would see an initial purchase of 10 Nikola Tre BEV trucks, with the option to purchase 90 more over the next two years.
Nikola saw its stock price fall through practically the entirety of last year after fraud accusations. Nikola’s founder and former Chief Executive Trevor Milton was even arrested after making a number of false claims related to the company’s technological capabilities. Over the course of the year, NKLA fell from $23 per share to less than $10. Investors quickly abandoned the too-good-to-be-true stock, as Nikola’s future became increasingly uncertain.
But no longer.
NKLA investors are likely breathing a sigh of relief this week as it appears the company has the walk to back its talk. Whether this is a flash in the pan or the beginning of a new EV powerhouse remains to be seen. Either way, Nikola should be happy to put its rocky past in the rear-view mirror.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.