Zero-emissions transportation and energy infrastructure solutions
company Nikola Corp. (NKLA:NASDAQ), announced yesterday that "Heniff Transportation Systems LLC has reached an agreement to initially acquire 10 Nikola Tre BEV trucks from Thompson Truck Centers, a member of Nikola's sales and service dealer network."
Nikola is a well-known, up and coming designer and manufacturer of heavy-duty commercial use battery-electric vehicles (BEV) and fuel-cell electric vehicles (FCEV). In addition, the company makes products for use in the buildout of electric energy infrastructure.
The report stated that Heniff Transportation Systems operates more than 2,000 tractors at around 100 locations in the U.S. The company is engaged in the business of "liquid bulk transportation, rail transloading, ISO depot operations, tank cleaning and related maintenance."
Under the terms of the agreement, Thompson Truck Centers will provide the sales, service, maintenance and energy infrastructure required to Heniff Transportation that is needed to operate its fleet of Nikola TRE BEV trucks. The companies indicated that the first truck deliveries will begin in H1/22.
The report mentioned that after the first 10 units are successfully integrated into Heniff's bulk transport operations, the firm anticipates that it will move forward with orders for 90 additional trucks into Heniff's fleet as outlined in the Letter of Understanding between the companies.
Bob Heniff, CEO of Heniff Transportation Systems commented, "After visiting with Nikola's leadership team, touring the new Coolidge, Ariz. manufacturing facility and taking a test ride in the Nikola Tre BEV, we were impressed by the power, performance, engineering, and quality of the truck…We see this partnership with Nikola and Thompson as a means to accelerate our strategy for electrification of our fleet and as a positive benefit for our customers, communities, employees and stakeholders."
Thompson Machinery's COO Mark McDonell remarked, "With the rapid regulatory changes around electric vehicles, it is important for Thompson to deliver innovative products to our customers that will meet the new standards of zero-emissions for transportation…This partnership with Heniff Transportation is an exciting first step in their journey to add zero-emission vehicles in their fleet."
Nikola's Energy and Commercial President Pablo Koziner stated, "The Nikola dealer network is a key component to delivering innovative zero-emissions products to our customers…Thompson will provide the sales, parts and service solutions for the Nikola trucks purchased by Heniff and also the related electric vehicle charging infrastructure. This agreement is intended to be a true turnkey solution, with the goal for Heniff Transportation to realize zero-emissions transportation with first-class dealer support."
Thompson Truck Centers is a subsidiary of Thompson Machinery, which first got started as a single family-owned GMC Truck Dealership. The company has since expanded greatly to become a leading construction equipment dealer. The firm offers maintenance and repair services for most all makes and models of medium and heavy-duty trucks including zero-emission vehicles.
Earlier this week, Nikola Corp. announced that it had reached a settlement with the U.S. Securities and Exchange Commission (SEC). The company advised that it had agreed to pay a total of $125 million in civil penalties via five installments over a period of two years.
The firm noted that it neither admitted nor denied the SEC's findings in the case and added that the agreed upon settlement resolves and concludes all government investigations of Nikola.
The company advised that during Q3/21 it took a $125 million earnings adjustment in its reserves in preparation for the expected settlement. Nikola mentioned that the first of the five payments is scheduled to be paid by YE/21 with the remaining four installments payable semi-annually over the next two years.
Nikola commented that its plans going forward are to continue in its strategic efforts to "deliver trucks to customers, expand its manufacturing facilities and our sales and service network and build out its hydrogen infrastructure ecosystem including hydrogen production, distribution and dispensing stations."
Nikola Corp. was first founded in 2015 and is headquartered in Phoenix, Ariz. The company designs and manufactures zero-emission battery-electric and hydrogen-electric vehicles (EVs), energy storage systems, EV drivetrains, vehicle components and infrastructure for hydrogen fueling stations.
Nikola began the day with a market cap around $3.8 billion with approximately 406.9 million shares outstanding and a short interest of about 12.6%. NKLA shares opened 5% higher today at $9.87 (+$0.47, +5.00%) over yesterday's $9.40 closing price. The stock has traded today between $9.79 and $11.50 per share and is currently trading at $11.09 (+$1.69, +17.98%).
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