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Nikola Shares Spike on Electric Garbage Truck Order

Nikola shares jumped after the electric-vehicle producer unveiled a deal to provide Republic Services with 2,500 zero-emission garbage trucks.
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Nikola  (NKLA) - Get Free Report shares jumped on Monday after the electric-vehicle producer unveiled a deal with waste-management company Republic Services  (RSG) - Get Free Report for 2,500 zero-emission garbage trucks. 

Terms weren't disclosed.

The vehicles will have a range of 150 miles and will be capable of recharging overnight, the companies said in a statement. The vehicles will be integrated into the fleet of  the Phoenix waste manager starting in 2023. 

"This partnership significantly accelerates Republic Services' progress in fleet innovation to drive profitable growth, reduce emissions, enhance customer loyalty and create long-term shareholder value," Republic Services President Jon Vander said in the statement. 

Nikola shares at last check were 14% higher at $41.81. Republic Services shares rose 0.8% to $91.30.

Nikola Founder Trevor Milton has told Yahoo that the company has a semi-truck backlog that exceeds 14,000 vehicles valued at $10 billion in potential revenue

The company has not yet begun production on its vehicles, though it plans to have its first electric semi on the market in 2021, ahead of the debut of Tesla's  (TSLA) - Get Free Report rival semitruck. 

Republic Services expects the new fleet to increase operational efficiency and provide economical, environmentally sustainable solutions for its customers. 

Additional benefits of electrification include "instant torque, no idling, regenerative braking, and up to 90% lower emissions on a per-mile basis and quieter operation in neighborhoods," according to the company. 

The move is part of Republic's long-term sustainability goal to reduce its greenhouse gas emissions by 35%. 

Nikola's stock has been volatile since its debut in June, reaching an intraday high of near $94 shortly after its IPO.