Shares of Nikola Corp. NKLA shot up 9.5% in premarket trading Monday, after the electric truck maker reportedly has secured an order to maker at least 2,500 electric garbage trucks for Republic Services Inc. RSG for an undisclosed amount.
According to a report in The Wall Street Journal, the battery-powered trucks Nikola will make can travel 150 miles on a charge. The company expects to start testing the struck in 2022, and to begin production in 2023, the report said.
Although the price of the trucks in the Republic Services order isn’t disclosed, Founder Trevor Milton told the WSJ that the company is committed to a price tag under $500,000 per vehicle, which is the going rate for electric garbage trucks currently sold by Nikola’s competitors.
Nikola’s stock has more than doubled (up 122%) over the past three months through Friday, while the S&P 500 SPX has gained 14.4%.