Nikola Corp. (NASDAQ: NKLA) stock shot up on Monday after the company announced a partnership with Republic Services Inc. (NYSE: RSG) to develop and purchase 2,500 electric waste and recycling collection trucks.
This agreement represents the industry’s first large-scale commitment to fleet electrification. The electric vehicles will have a range of 150 miles and be capable of recharging overnight.
These vehicles are expected to be integrated into the Republic Services fleet beginning in 2023. The deal is expandable to 5,000 vehicles over the life of the agreement.
For Republic Services, this collaboration represents a transformational step forward to leverage technology and innovation to reduce emissions, increase operational efficiency and provide economical, environmentally sustainable solutions to its customers.
Last year, Republic Services set a long-term sustainability goal to reduce greenhouse gas emissions by 35%.
For Nikola, this deal represents the first steps toward real revenue, even though the company has yet to get its production in line. In its most recent earnings report, the company only had revenues of $36,000, which were entirely attributable to installing solar panels for upper management.
Nikola stock traded up about 15% to $42.28 on Monday, in a post-IPO range of $10.27 to $93.99. The consensus price target is $58.33.
Republic Services traded at $90.90, in a 52-week range of $65.37 to $100.91. The consensus price target is $94.83.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.