Electric and hydrogen-powered truck maker Nikola has announced a deal with waste management company Republic Services. The deal includes 2,500 zero-emission electric garbage trucks with the possibility of an expansion for up to 5,000. Nikola is expected to begin road testing late next year into early 2022, with full production deliveries in 2023.
Nikola Founder, Trevor Milton said in a statement, “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.”
Nikola recently began construction on its manufacturing facility in Arizona. The company plans to have its first electric-powered semi-truck on the market in 2021 with hydrogen-powered options expected in 2023.
Nikola released its first earnings on August 4 announcing it had suffered a $119 million net loss in the first six months of 2020. Following its debut in early June, Nikola shares tripled up to $94 in under two weeks as it seemed like the company could stand a chance when competing with Tesla. However, it is now back down to around $36 while the company still works out its production timeline.
The new contract could eventually be worth $1 billion to $2 billion, Milton said in a conference call. However, no dollar amount was given regarding Nikola’s new deal with Republic Services.