Nikola Corp NKLA shares are advancing Thursday in reaction to a deal announced by the green-energy vehicle manufacturer.
What Happened: Phoenix, Arizona-based Nikola said it has signed a letter of intent with Saia Inc SAIA, a less-than-truckload company, for the purchase or lease of 100 Nikola Tre heavy-duty EV trucks.
The culmination of the agreement depends on the satisfactory completion of a demonstration program, which will include three BEV trucks operating in separate locations across the Saia network, beginning in the first half of 2022.
Deliveries of the 100 production vehicles are scheduled between 2022 and 2024, with the initial 25 targeted for 2022.
"We are thrilled that Saia has chosen to work with us," said Nikola President, Energy and Commercial, Pablo Koziner.
Related Link: Nikola Stock Sees A Strong Bounce Off Support: What's Next?
Why It's Important: The Saia deal represents a back-to-back win for Nikola. USA Truck announced Wednesday a letter of intent for an initial purchase of Nikola Tre EV trucks from Thompson Truck Centers, a member of Nikola's sales and service dealer network work.
The agreement with USA Truck is modeled as a fleet-as-a-service arrangement, where Thompson will provide sales, service, maintenance and energy infrastructure.
In another positive development, Nikola and Tesla Inc TSLA on Wednesday mutually filed for dismissing a longstanding patent infringement case pending between the companies, removing a legal overhang.
For Nikola, the agreements provide an opportunity to restore its creditably from the scandal it found itself in over misleading investors about its business.
NKLA Price Action: Nikola shares were up 1.29% at $10.02 Thursday morning at publication.
Related Link: Nikola's Set to Make a Comeback in 2022
Photo: Courtesy Nikola
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