What happened
Shares of electric heavy truck maker Nikola(NASDAQ: NKLA) continued their remarkable run today. The stock has rocketed higher by almost 300% since the end of May and jumped as much as another 15.4% this morning. The stock had settled back to a gain of 13.2% as of 10:15 a.m. ET.
So what
Today's surge comes after the company announced an agreement with J.B. Hunt Transport for the sale of 13 Nikola electric trucks to the trucking company. With a market cap of more than $20 billion, J.B. Hunt is likely the largest company Nikola has announced as a customer to date. The order consists of 10 battery electric Class 8 trucks along with three hydrogen fuel cell-powered vehicles. Initial delivery is expected as soon as August.
Now what
The strong rally in Nikola shares over the last two months came from several catalysts. The company has continued to announce partnerships for hydrogen supply and fueling infrastructure as well as moves to help solidify its financial position.
Two weeks ago Nikola said it was selling its Arizona hydrogen hub to Australia-based Fortescue Future Industries (FFI) to help lower its capital spending needs and bring in additional cash.
Nikola management also expects to gain enough shareholder support for an important proposal that will help it raise future capital when the company reconvenes its shareholder meeting later this week. The rise in the share price has also brought Nikola back into compliance with the Nasdaq Stock Exchange's listing requirements. The stock was at risk of being delisted as the share price hovered well below $1 per share in late May.
Today's news is another step in the right direction for Nikola, and investors are pushing the stock higher as a result.
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Howard Smith has positions in Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
