Nikola Explodes After Company Confirms Huge Order

Tesla rival Nikola saw its shares soar on Monday after the company confirmed an order of thousands of all-electric refuse trucks for Republic Services.

The order includes 2,500 electrified chassis, with the option to increase it up to 5,000 units.

Nikola Executive Chairman Trevor Milton said the “refuse market is one of the most stable markets in the industry and provides long-term shareholder value.”

Milton characterized the deal as a partnership between the companies through the life cycle of the vehicles.

“They’re our anchor for the refuse market,” Milton said. According to the chairman, the deal is not exclusive to the company, which will allow Nikola to sell the vehicles to other refuse companies.

The company expects manufacturing and testing of the trucks to begin in early 2022, followed by deliveries in 2023.

“Nikola specializes in heavy-duty, zero-emission Class 8 trucks. The refuse market is one of the most stable markets in the industry and provides long-term shareholder value,” said Milton.

“The Nikola Tre powertrain is ideal for the refuse market as it shares and uses the same batteries, controls, inverters and e-axle. By sharing the Tre platform, we can drive the cost down for both programs by using the same parts. You couldn’t pick a better partner than Republic Services, a leader in long-term environmental sustainability and customer service. Republic Services will help us ensure the Nikola Tre meets customer and fleet lifecycle demands and we are excited to have them participate in the design process.”

Republic Services is the second largest recycling and solid waste provider in the U.S. and is recognized as an industry leader in providing environmentally responsible, sustainable solutions to its customers.

“This is a game changer,” said Nikola CEO, Mark Russell. “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.”

Disclaimer: We have no position in Nikola Corporation (NASDAQ: NKLA) and have not been compensated for this article.