J.B. Hunt Transport has placed an order for 13 cutting-edge battery-electric and hydrogen-powered fuel cell trucks from Nikola. This major purchase not only helps Nikola reduce inventory but also allows them to expand their order book for zero-emission trucks.
The impact of this collaboration is already being felt in the market. Company shares of Nikola (NASDAQ: NKLA) closed Monday with an impressive 17.62% surge, reaching $2.67. On Tuesday morning, they crossed the $3 mark for the first time since October. It’s a remarkable turnaround considering that just a few weeks ago, shares were struggling below $1 and delisting from the Nasdaq was a real concern.
The benefits of this partnership extend beyond financial gains. For J.B. Hunt (NASDAQ: JBHT), this strategic move aligns perfectly with their commitment to sustainability. By adding more zero-tailpipe and fully zero-emission trucks to their fleet, they are making significant progress towards their environmental goals.
Unlike other fuel cell truck customers, J.B. Hunt has already had substantial experience with hydrogen-powered trucks, allowing them to skip the testing phase. This showcases their confidence in Nikola’s technology and further solidifies their position as an industry leader in green transportation.
Deliveries Begin This Month
Starting in August, Nikola will begin delivering its battery-electric Tres trucks. With the ability to cover up to 300 miles on a single electric charge, these trucks are paving the way for a more sustainable future.
In a statement, Nick Hobbs, COO and president of J.B. Hunt contract services, expressed the importance of embracing new technologies. He believes that these innovative solutions have the power to transform the way we move freight. The Lowell-based company is committed to reducing its carbon emissions by 32% by 2034 compared to 2019 levels.
J.B. Hunt has chosen the greater Los Angeles and Phoenix areas as the routes for its new trucks. To ensure a smooth operation, Nikola’s hydrogen arm, HYLA, will supply the hydrogen and fueling infrastructure for the fuel cell electric trucks. Production for these trucks is set to begin this quarter.
J.B. Hunt has already taken a step towards a greener fleet by adding a Freightliner eCascadia to its lineup in December 2022. Four more eCascadia tractors have been added since then, with plans to incorporate more zero-emission vehicles in the future.
A Big Week for Nikola
A regulation change in Delaware is set to take effect on Tuesday, paving the way for the company to double the number of authorized shares. This move directly aligns with their goal of paying off overdue interest on a $200 million hedge fund loan by selling some of the newly authorized shares. Additionally, it will bolster Nikola’s balance sheet while they await revenue from fuel cell truck sales to over a dozen customers.
After adjourning its virtual annual meeting twice due to inadequate votes, Nikola plans to announce the final vote on the share increase proposal this Thursday. The company is confident that the new regulation, which only requires a simple majority of proxy votes in favor of the share increase, will secure the necessary support. In the past, a higher threshold of 50% plus one of all outstanding shares was required.
Furthermore, Nikola has received a substantial $16.3 million to support the development of seven hydrogen refueling stations. These stations will be accessible to all hydrogen-powered trucks, further enhancing the infrastructure for clean fuel transportation. This funding comes in addition to a previous $41.9 million grant award for six hydrogen refueling stations along California freight corridors under the Trade Corridor Enhancement Program (TCEP). Nikola’s partnership with Voltera, a startup infrastructure developer, ensures the financial backing of up to 50 hydrogen stations through their Hyla brand.
Source: FreightWaves
