Nikola (NASDAQ:NKLA) investors are jumping for joy after the first delivery of client trucks was officially announced.
The company shared the news about the delivery last Friday, but the actual arrival of four trucks at the client called Total Transportation Services Inc. (TTSI) seems to have triggered the stock price surge.
The order is for 100 emission-free trucks for so-called drayage which describes short-distance hauls, most often within the premises of a port. TTSI will be testing out the first deliveries at the ports of Long Beach and Los Angeles.
Nikola First Delivery Delivers
The company has experienced delays in its production schedule recently. In November it reported that by the end of 2021 there should be 25 trucks delivered to customers.
It’s been a tough year for NKLA, as the stock has registered a 70% drop since January. But this latest jump could be a sign of things to come for Nikola’s stock price in 2022.
Nikola also reassured investors that it is on track with testing its hydrogen-fuel cell trucks and announced a partnership with TC Energy to develop and manage a large-scale hydrogen production network in the US and Canada.
Company to Pay SEC Fine
It’s been a busy week for Nikola with the first delivery announcement following on the heels of an agreement between the company and the Securities and Exchange Commission to pay $125 million for misleading investors about what its products are capable of, as well as the overall business prospects of the company.
The SEC stated that Nikola must take responsibility for fraudulent claims made by its founder and now ex-CEO Trevor Milton. The Justice Department is still investigating his statements but he has pleaded not guilty to the charges.
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