NKLA - What made Nikola shares jump 10% on Wednesday?

Shares of Nikola Corporation ( NASDAQ: NKLA ) are up 10% on Wednesday after the company said USA Truck Inc plans on buying 10 of its battery-electric trucks.

USA Truck could buy another 90 BEVs from Nikola

In the press release this morning, Nikola said the logistics company will buy its BEV trucks from Thompson Truck Centres – a member of its sales and service dealer network. The electric trucks are likely to be delivered by June of 2022.

The agreement also binds Thompson to provide after-sales services to USA Truck, including energy infrastructure and maintenance. The trucking services company can choose to buy another 90 zero-emission trucks from Nikola at a later stage.

The news comes more than a week after Nikola Corp said it delivered its first electric truck to a customer. According to Wedbush Securities, spending on commercial electric vehicles will stand above $1.2 trillion by the end of this decade.

USA Truck CEO James Reed’s remarks

According to USA Truck CEO James Reed, choosing to partner with Nikola Corp is a move in line with the ESG initiatives of the company. In the press release, he said:

USAT Capacity Solutions has become a leader in our industry by partnering with technology companies that bring innovative solutions to our customers and drivers. The partnership advances our critically important ESG initiatives and further demonstrates our commitment to sustainability.

Also on Wednesday, the American company that makes electric trucks said it dropped a $2.0 billion patent lawsuit against the industry leader, Tesla Inc. Nikole had sued Elon Musk’s company in 2018 for copying its designs.

The post What made Nikola shares jump 10% on Wednesday? appeared first on Invezz .