Nikola (NKLA) -) shares moved firmly higher Monday after the electric truckmaker confirmed a thirteen unit order from transport group J.B. Hunt (JBHT) -).
Nikola said J.B. Hunt Transport, a subsidiary of the transport and logistics group, will buy thirteen of its Class 8 zer0-emissions trucks, including ten battery electric vehicles and three hydrogen fuel cell electric vehicles. The first deliveries, Nikola said, are expected next month.
The deal builds on a solid set of second quarter deliveries for Nikola, which earlier this month said its shifted 66 units -- double its first quarter tally -- thanks in part to robust wholesale demand. The group's production rate, however, fell to 33 trucks from 63 amid supply chain constraints and pressure on its overall cash position.
"We are thrilled that the industry leader for supply-chain solutions has chosen our Nikola Class 8 battery-electric and hydrogen fuel cell electric trucks to use for their operations," said CEO Michael Lohscheller.
"Their purchase and use of these zero-emissions trucks are a testament to the hard work of our engineering, development and manufacturing teams, who created a robust, highly advanced truck lineup, as well as our HYLA hydrogen infrastructure solutions, which are designed to benefit companies such as J.B. Hunt," he added.
Nikola shares were marked 20.7% higher in early afternoon trading Monday to change hands at $2.74 each.
“It’s important for us to be at the forefront of new technologies and innovative solutions that have the potential to change the way we move freight,” said J.B. Hunt COO Nick Hobbs. “These zero-emission trucks from Nikola advance our progress towards achieving our ambitious goal to reduce carbon emission intensity through viable solutions.”
The market for EV trucks has been active over the past month following a move by Ford Motor (F) -) to cut the price of its signature F-150 to under $50,000 just days after Tesla (TSLA) -) rolled its first cybertruck off the assembly line.
Tesla CEO Elon Musk told investors on July 19 that demand for his cybertruck is "so far, off the hook, you can't even see the hook" but doesn't expect to make a "high volume" of the new vehicle until next year, citing supply chain issues linked to the "10,000 unique parts and processes" in its production.
Tesla is also planning to spend around $3.6 billion to expand its Nevada gigafactory as it looks to ramp-up production of its long-awaited semi, a director competitor to Nikola's TRE.
The Tesla semi, which will be powered by a 4680 battery cell, was initially expected in 2019. Musk hopes to produce around 50,000 a year by 2024.
