Nikola Motors has bagged a huge order of 2,500, expandable up to 5,000, of its all-electric Refuse trucks from Republic Services.
The Phoenix-based EV startup aims to start manufacturing and on-road testing by early 2022, with a delivery date scheduled sometime in 2023.
Trevor Milton, the founder and executive chairman of Nikola, said that “The Refuse market is one of the most stable markets in the industry and provides long-term shareholder value.” For the Refuse truck, Nikola plans to use the same platform and drivetrain as that of the Nikola Tre.
The powertrain of the Tre model is ideal for Refuse trucks, which will be using the same e-axle, inverter, controls, and batteries. The platform and component sharing with the Tre will certainely help Nikola by significantly reducing the cost in terms of software and research and development.
“Trucks will include both automated side loaders and front-end loaders — all of which will be zero-emission,” said the CEO of Nikola, Mark Russel.
Unlike other situations where Refuse truck customers need to order OEM chassis parts from different suppliers, Nikola is eliminating assembly steps. The EV startup is offering the Refuse as a fully integrated truck with chassis and body, thereby becoming the one-stop destination for potential customers.
Furthermore, Nikola claims that the 1000 horsepower worth program can be solid competition for its natural gas and diesel competitors. Nikola Motor-manufactured trucks are promised to deliver three-times more horsepower than equivalent natural gas and diesel-powered trucks, enabling the Refuse truck to go up-hill while hauling heavy loads without any problem. This feature may give a boost to Nikola Refuse trucks and allow them to take over the market.
With these Refuse trucks, Nikola Motor aims to allow Republic Services to offer a quieter and emission-free service. The trucks are expected to offer a distance coverage up to 150 miles and and storage space of over 1,200 cans on a single charge
Republic Services stand as the second-largest recycling and solid waste provider in the U.S and is considered the industry leader for providing sustainable and environmentally-friendly solutions to customers. “Republic Services will help us ensure the Nikola Tre meets customer and fleet lifecycle demands, and we are excited to have them participate in the design process,” said Mr. Milton.
Furthermore, markets are apparently reacting favorabily to the annoucement. Since the news came out, the company’s share price has gone up by 24.5 percent in intraday trading, going as high as at $45.72 per share and closing at $44.81, for a total 22 percent hike.
This deal is only one of the milestones that Nikola Motors has already achieved in the history of electric vehicle companies. According to Milton’s tweet, the order bagged is worth $1 billion to $2 billion. The deal and hike in the market is a pleasing sign for the shareholders, and they continue to believe in the mission of the company.