The logistics company J.B. Hunt Transport Services has made a significant move towards embracing new technologies by placing an order for 13 trucks from the electric trucking start-up Nikola. This announcement has pleased investors and highlights J.B. Hunt's commitment to change the way freight is transported.
Nikola, a leading provider of battery-electric and hydrogen-fuel-cell-electric heavy-duty trucks, has secured this deal with J.B. Hunt - one of the largest logistic service providers in North America. The order includes 10 battery-electric trucks and three hydrogen-fuel-cell-electric trucks.
Nick Hobbs, the Chief Operating Officer and President of Contract Services at J.B. Hunt, stated in a news release that being at the forefront of new technologies and innovative solutions is crucial for their company. They believe that zero-emission trucks from Nikola will help them achieve their ambitious goal of reducing carbon emission intensity through viable solutions.
Upon the announcement, Nikola's stock experienced an 8.4% surge in early trading, reaching $2.46 per share. Likewise, J.B Hunt's shares showed a positive response, increasing by about 0.9%.
Nikola's recent success can be attributed to a series of notable orders, such as the recent order for 50 trucks from BayoTech, which caused their shares to rise by more than 60% in a single day.
However, it's worth noting that despite these recent achievements, Nikola's stock price has dropped significantly from its record high of $93.99 in June 2022. Factors such as slower-than-expected business development, higher interest rates, and the need for additional capital have contributed to this decline.
According to Wall Street estimates, Nikola is projected to generate approximately $150 million in sales in 2023, a stark contrast to their previous projection of $1.4 billion. Additionally, it is forecasted that Nikola will require over $1.1 billion in investments to build its business by the end of 2025. As of the first quarter, Nikola had approximately $200 million in available funds.
While challenges lie ahead for Nikola, their partnership with J.B. Hunt represents a significant step towards realizing their mission of transforming the transportation industry.
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