Nikola Stock Jumps on Deal With USA Truck

Courtesy Nikola

Nikola stock rose after the electric truck maker said USA Truck has agreed to an initial purchase of 10 Tre battery-electric vehicle trucks. Shares of Nikola (ticker: NKLA ) rose 10.8% to £11.43 on Wednesday after it posted information about the deal with USA Truck ( USAK ), which is one of the largest truckload carriers and brokers. USA Truck stock was down 1.2%.

The two companies’ letter of intent outlines a “fleet-as-a-service” model, where Nikola’s dealer, Thompson Truck Centers, will provide sales, service, maintenance, and energy infrastructure to operate the battery-electric vehicle, or BEV, trucks. USA Truck has the option of purchasing an additional 90 trucks over the next two years. “The partnership with Nikola and Thompson advances our critically important ESG initiatives and further demonstrates our commitment to sustainability now and in the future,” James Reed, president and CEO of USA Truck, said in a news release.

Nikola expects to deliver the initial trucks in the first half of 2022.

The company completed its first customer delivery on Dec.

22, 2021, after navigating some production delays.

Write to Sabrina Escobar at [email protected]