Please ensure Javascript is enabled for purposes of website accessibility

Nikola Receives an Order for 100 Zero-Emission Trucks

By Scott Levine - May 6, 2021 at 1:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The deal is with Total Transportation Services in Southern California, but don't expect to see the trucks hauling goods just yet.

If things go according to plan, Nikola Motors (NKLA -1.61%) will soon be helping to keep the skies over the City of Angels a little clearer. The company announced today that it signed a letter of intent with Total Transportation Services (TTSI), a port trucking company in Southern California, for a vehicle trial that could lead to an order of as many as 100 Class 8 battery-electric vehicle (BEV) and fuel-cell electric vehicle (FCEV) semi-trucks that will operate at the Port of Los Angeles/Long Beach.

To start, Nikola will provide four trucks -- two BEVs and two FCEVs -- in the first half of 2022. Should the vehicle trial be a success and TTSI is able to obtain government funding, Nikola will deliver 30 BEVs later in 2022 and 70 FCEVs in early 2023. Financial terms of the deal were not disclosed.

A truck drives away from the Port of Los Angeles.

The Port of Los Angeles. Image source: Getty Images.

According to Jason Roycht, Nikola's global head of its FCEV business unit, the partnership with TTSI may be an important first step toward further collaboration: "We hope to jointly demonstrate with TTSI the advantages of both technologies during vehicle trials at the Port of Los Angeles/Long Beach. The planned conversion of the TTSI fleet over the next several years will provide a road map to implement zero-emission trucking that we hope many in Southern California will follow."

While Nikola investors may be charged up about the potential deal with TTSI, it's imperative for them to remember that this partnership is in its infancy. The signing of a letter of intent hardly guarantees that trucks will be delivered -- plenty can go wrong before TTSI actually gets behind the wheel of Nikola's trucks. Nikola's investors, for example, don't have to dig far into their memories to remember the best laid plans of its deal with General Motors that went astray, so they should take today's announcement with a grain of salt.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nikola Corporation Stock Quote
Nikola Corporation
NKLA
$6.72 (-1.61%) $0.11
General Motors Company Stock Quote
General Motors Company
GM
$39.40 (-0.20%) $0.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.