Here’s some trashy news: The electric vehicle maker named after the same innovator as Tesla is partnering with one of the largest waste-hauling companies in the United States to make 2,500 electric garbage trucks.
Nikola and Republic Services announced today that the zero-emissions trash and recycling trucks—both automated side loaders and front-end loaders—will have a 150-mile range and go into service in early 2023. On-road testing will likely begin in early 2022. The agreement includes the option to grow to as many as 5,000 trucks.
Financial details of the deal weren’t released.
“Nikola specializes in heavy-duty, zero-emission Class 8 trucks. The refuse market is one of the most stable markets in the industry and provides long-term shareholder value,” Nikola founder and executive chairman Trevor Milton said in a written statement.
Wall Street seems to like the idea. Nikola stock was $43.38 per share, up $6.66 or 18.14%, in midafternoon trading, while Republic’s was $91.05, up 46 cents or 0.51%.
Both companies are headquartered in Phoenix.
“Our agreement with Nikola represents the industry’s first large-scale commitment to fleet electrification. We expect to realize significant operating cost savings and environmental benefits from these trucks,” Republic Services president Jon Vander Ark said in a written statement.
Last year, the Fortune 500 company, which operates in 41 states and Puerto Rico, pledged to cut its greenhouse gas emissions by 35%.
To date, Nikola’s biggest deal has been with Anheuser-Busch. The contract has the beer maker leasing as many as 800 hydrogen fuel cell electric trucks.
Nikola’s IPO was on June 4.