Nikola’s (NASDAQ:NKLA) redemption run continues today after USA Truck (NASDAQ:USAK) announced entering a letter of intent (LOI) with the electric truck company. NKLA stock shot up as much as 9% in early morning trading as investors jump on the once-controversial EV maker.
The LOI establishes an initial purchase of 10 Nikola Tre BEV trucks from Thompson Truck Centers, an affiliate in Nikola’s dealer network. Technically, the LOI is actually between USA Truck and Thompson. Thompson is providing all services to operate and maintain the Nikola trucks through the duration of the deal. The trucks are scheduled for delivery in the first half of this year. Additionally, the deal gives USA Truck the option to purchase 90 more Nikola trucks until 2024.
Nikola Energy & Commercial President Pablo Koziner had some kind words for the deal:
“We are excited to partner with USA Truck and our dealer, Thompson, in delivering a comprehensive heavy-duty truck solution using zero-emissions electric drive battery-powered technology. USA Truck is committed to advancing a more sustainable and efficient approach to transportation, and we are excited to integrate our Nikola Tre BEVs in their operations with market-leading support by Thompson.”
What else do you need to know about Nikola’s promising partnership?
NKLA Stock Could Be Eying Rebound in New Year
The deal comes as the latest in a number of uplifting news items that has captivated EV bulls of late. Just last month, Nikola delivered its first EV truck as part of a 100-truck deal with Total Transportation Services. It was a highly publicized event, and reasonably so.
Nikola was in hot water last year after receiving accusations of fraud related to claims made by former CEO Trevor Milton. Many have even questioned if Nikola would ever produce its trucks in the face of such debilitating investigations. As such, Nikola agreed to pay $125 million in fraud charges to the U.S. Securities and Exchange Commission just last month. Before it could settle, though, its share price suffered. Nikola dropped from a 52-week high of $30 down to below $10.
However, with the new year comes new opportunities, something Nikola is clearly looking to explore. It appears Nikola is leaving the past behind as the company continues to land high-flying deals for its zero-emission trucks.
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.