JBHT - Nikola rallies after landing zero-emission truck order from J.B. Hunt

2023-07-31 08:22:48 ET

Nikola Corporation ( NASDAQ: NKLA ) broke higher on Monday after inking an initial agreement with J.B. Hunt Transport Services ( NASDAQ: JBHT ) to supply 10 battery-electric and three hydrogen fuel cell electric Class 8 trucks.

The initial truck order will include 10 battery-electric vehicles, with delivery of the first vehicles expected in August. The trucks will be strategically located at facilities servicing J.B. Hunt's key routes, including in the greater Los Angeles and Phoenix areas. Nikola's hydrogen arm, HYLA, will supply the hydrogen and fueling infrastructure.

For its part, J.B. Hunt ( JBHT ) said it is committed to helping drive the industry toward a low-carbon future and reducing its environmental impact. The company plans to continually evaluate opportunities to utilize emerging technologies in exhaust-free vehicles.

"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 Nick Hobbs, chief operating officer and president of contract services at J.B. Hunt. "These zero-emission trucks from Nikola advance our progress towards achieving our ambitious goal to reduce carbon emission intensity through viable solutions, " he added.

Shares of Nikola ( NKLA ) jumped 6.19% in premarket trading, while J.B Hunt Transport Services ( JBHT ) showed a 0.75% gain.

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