Nikola $NKLA Stock Soars On Heniff Transportation LOI

  • Post category:Stock Trading
  • Reading time:7 mins read
Get Email Alerts and Follow Us:

NKLA stock soared 5.1% on December 22, 2021, after the company announced sales to Heniff Transportation.

Heniff Transportation Signs LOI with the Intent to Purchase 100 Zero-Emission Trucks from Thompson Truck Centers and Nikola

NASHVILLE, Tenn., Dec. 22, 2021 /PRNewswire/ — Heniff Transportation Systems, LLC has reached an agreement to initially acquire 10 Nikola Tre BEV trucks from Thompson Truck Centers, a member of the Nikola Corporation (Nasdaq: NKLA) sales and service dealer network. Nikola is a leading designer and manufacturer of heavy-duty commercial battery-electric vehicles (BEV), fuel-cell electric vehicles (FCEV) and energy infrastructure solutions.

The agreement between Heniff Transportation and Thompson Truck Centers is a fleet-as-a-service model where Thompson will provide the sales, service, maintenance, and energy infrastructure required to operate the Nikola Tre BEV trucks. Deliveries are expected to commence first half of 2022.

Upon the successful initial deployment of 10 units into their bulk transport operation, Heniff and Thompson have agreed to pursue the placement of an additional 90 trucks into Heniff’s fleet.

Heniff is a family of companies recognized as a leader in liquid bulk transportation, rail transloading, ISO depot operations, tank cleaning, and related maintenance. With nearly 100 locations connected nationwide and over 2,000 tractors, their integrated freight network is unparalleled.

“After visiting with Nikola’s leadership team, touring the new Coolidge, Arizona manufacturing facility, and taking a test ride in the Nikola Tre BEV, we were impressed by the power, performance, engineering, and quality of the truck,” said Bob Heniff, CEO of Heniff Transportation. “We see this partnership with Nikola and Thompson as a means to accelerate our strategy for electrification of our fleet and as a positive benefit for our customers, communities, employees, and stakeholders.”

“With the rapid regulatory changes around electric vehicles, it is important for Thompson to deliver innovative products to our customers that will meet the new standards of zero-emissions for transportation,” states Mark McDonell, COO of Thompson Machinery. “This partnership with Heniff Transportation is an exciting first step in their journey to add zero-emission vehicles in their fleet.”

“The Nikola dealer network is a key component to delivering innovative zero-emissions products to our customers,” explained Nikola Energy and Commercial President, Pablo Koziner. “Thompson will provide the sales, parts, and service solutions for the Nikola trucks purchased by Heniff, and also the related electric vehicle charging infrastructure. This agreement is intended to be a true turnkey solution, with the goal for Heniff Transportation to realize zero-emissions transportation with first-class dealer support.”

Nikola to pay $125M to SEC in settlement agreement

Nikola announced a resolution with the U.S. SEC. As part of the resolution, Nikola has agreed to pay $125M to the SEC in five installments over two years. The first installment will be paid by the end of 2021, and the remaining installments will be paid semiannually through 2023. The company previously disclosed on November 4, 2021 that it had taken a $125M reserve in its third quarter earnings to account for the expected settlement. Nikola commented further: “We are pleased to bring this chapter to a close as the company has now resolved all government investigations. We will continue to execute on our strategy and vision to deliver on our business plan, including delivering trucks to customers, expanding our manufacturing facilities and our sales and service network, and building out our hydrogen infrastructure ecosystem including hydrogen production, distribution and dispensing stations. Under the terms of the resolution, Nikola neither admits nor denies the SEC’s findings in this matter. The company has taken action to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations.”

Nikola announces delivery of first Tre battery-electric pilot trucks to TTSI

On December 17, 2021, Nikola Corporation announced it has delivered the first Nikola Tre battery-electric vehicle pilot trucks to Total Transportation Services Inc., or TTSI, which it identifies as “one of Southern California’s prominent port trucking companies.” “Nikola committed to make its first Tre BEV deliveries in Q4 2021 and it is a big honor to celebrate this milestone with our partner, TTSI, and dignitaries who are committed to advancing zero-emission transportation solutions to reduce truck emissions in port operations. TTSI has significant sustainability goals, and we are pleased to help them achieve their vision with our zero-emission trucks,” said Nikola CEO Mark Russell.

Nikola price target raised to $15 from $10 at Wedbush

On November 8, 2021, Wedbush analyst Daniel Ives raised the firm’s price target on Nikola to $15 from $10 and keeps a Neutral rating on the shares. The analyst notes that Nikola has taken some significant steps toward building back its Street credibility as the company’s Arizona factory build-out, key partnerships, and now settling the SEC issues are “all positives in the eyes of the Street.”

📺 VIDEO Nikola jumps after tweet about first delivery

CNBC’s Kristina Partsinevelos joins Closing Bell to report on news from EV maker Nikola.

📈 NKLA Stock Technical Analysis

Nkla Stock

The short-term trend is negative, as is the long-term trend. NKLA is part of the Machinery industry. There are 152 other stocks in this industry, of which 77% are performing better than NKLA. NKLA is currently trading near the lower end of its 52-week range, which is not a good sign. Certainly not because the S&P500 Index is trading near new 52 week highs at the moment. There is a resistance zone ranging from 9.43 to 9.58. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is a support at 9.39 from a horizontal line in the weekly time frame. There is also support at 9.08 from a horizontal line in the daily time frame. Although the technical rating is bad, NKLA does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. Click here to sign up for email alerts on chart setups in NKLA stock.

Get Email Alerts and Follow Us: