Nikola (NASDAQ:NKLA) stock is rising Thursday after the electric vehicle (EV) company announced a new agreement with E.ON and Richter Group.
According to a news release covering the deal, Nikola will supply Richter Group with 20 of its Class 8, heavy-duty Nikola Tre hydrogen-electric vehicles. This is part of Richter Group’s plan to switch its 160-vehicle fleet over to Nikola Tre vehicles over the next five years.
To go along with this, Richter Group intends to work with its logistics partners to have them transition to the Nikola Tre hydrogen-electric vehicles. If successful, that would result in an extra 750 hydrogen-electric truck orders for the company across the same five years that Richter Group transitions its fleet.
E.ON’s part of the collaboration has it supply Ritcher Group with fuel for the Nikola vehicles. That includes providing it with green hydrogen, as well as setting up refueling infrastructure for the company to use.
What This Means for NKLA Stock
Nikola could benefit from the deal as it provides vehicles to Richter Group over a five-year period. If all goes well, it could also see an increase in EV orders thanks to Richter Group convincing its partners to switch to the company’s vehicles.
NKLA stock is up 1.3% as of Thursday morning.
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On the date of publication, William White 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.