Nikola (NASDAQ:NKLA) stock is up 8% today after Walmart (NYSE:WMT) announced a collaboration with the electric truck maker. The sometimes-controversial startup has seen renewed interest in the face of a proof-of-concept with the retail mega-giant.
This morning, Walmart announced it is expanding its lineup of zero-emissions transportation fleets. In the news release, Senior Vice President Fernando Cortes offered details about the company’s transportation initiatives. Walmart is currently piloting solutions for over-the-road (OTR) trucks, refrigerated trailers known as “reefers,” and yard trucks.
Nikola fans will be mostly interested in OTRs, as the company was specifically named in the announcement as a partner behind the upcoming battery-electric day cab:
“Later this summer, we aim to run a battery-electric day cab proof of concept with Freightliner’s eCascadia and Nikola’s Tre BEV out of a distribution center in Fontana, California. These electric day cabs will be picking up loads from suppliers and delivering them to a consolidation center in the area. Short-range deliveries such as these are a great use case for electric trucks, and we’re excited to be among the first to test them in our operations.”
NKLA Stock Climbs As Electric Trucks Gain Steam
Nikola’s comeback story continues to gain new wrinkles as more companies take on the electric vehicle (EV) maker’s trucks in either commercial or pilot capacities. Indeed, since the arrest of Nikola founder and former CEO Trevor Milton last year, the company has had to fight to regain customer and investor sentiment.
However, in the past few months, Nikola has announced partnership after partnership with brands interested in electric trucking. This includes the likes of Anheuser Busch (NYSE:BUD), Total Transportations Services and many more companies. The deals, combined with recent deliveries, have served to dig Nikola out of its Milton-imposed rabbit hole.
Recently, the company announced it will move forward with its production scaling. The company estimates it will deliver between 300 and 500 vehicles this year. This is a strong sign for the EV maker, as it reflects the rigidity of its supply chain despite global bottlenecks weighing on companies across the globe.
Despite the promising news, NKLA is down more than 30% on the year. This shouldn’t come as much of a surprise, however; tech and growth stocks have been battered by volatile market conditions this year. The tech-heavy Nasdaq is down more than 23% as interest rate hikes, inflation and global supply chain hiccups way down investors.
On the date of publication, Shrey Dua did not hold (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.