LAS VEGAS - Nikola (NASDAQ:NKLA) Corporation (NASDAQ:NKLA), known for its zero-emission vehicles, has announced a significant order from AiLO Logistics for 100 hydrogen fuel cell electric trucks (FCEVs). The order, placed through Tom's Truck Centers, a Nikola sales and service dealer, is set for delivery in 2025 and marks a substantial move in the trucking industry's shift towards decarbonization.
AiLO Logistics, a major drayage carrier operating in the Ports of Los Angeles and Long Beach, has previously ordered 50 Nikola FCEVs, with deliveries already underway throughout 2024. This latest order doubles their commitment to incorporating Nikola's sustainable vehicles into their fleet.
Ryan Clayton, Global Head of Sales at Nikola Corporation, expressed pride in the repeat business, stating, "Having a prominent and mission-driven customer in AiLO not only purchase trucks for 2024 but double their order for 2025 is an honor for our organization and a testament to their drive to make a difference."
Jack Khudikyan, CEO of AiLO, emphasized the strategic move as a reaffirmation of their commitment to environmental stewardship and technological advancement. "This strategic move to incorporate Nikola FCEVs into our operations reaffirms our commitment to environmental stewardship and underscores our proactive approach toward embracing cutting-edge technologies," said Khudikyan.
Nikola Corporation, with headquarters in Phoenix, Arizona, and a manufacturing facility in Coolidge, Arizona, is focused on transforming commercial transportation with its Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks.
The Port of Los Angeles has seen a 25% increase in cargo movement in the first four months of 2024 compared to the previous year, highlighting the growing demand for efficient and sustainable logistics solutions. AiLO's transition to zero-emission vehicles aligns with this demand and their customers' Green Supply Chain Goals.
This news is based on a press release statement from Nikola Corporation.
InvestingPro Insights
The recent order from AiLO Logistics for an additional 100 hydrogen fuel cell electric trucks from Nikola Corporation (NASDAQ:NKLA) signifies a growing confidence in the company's zero-emission vehicles. While this news bodes well for Nikola's future prospects, it's important for investors to consider the company's financial health and market performance for a comprehensive understanding.
According to InvestingPro data, Nikola Corporation currently holds a market capitalization of 714.9 million USD. Despite the positive news, the company's revenue has seen a decline of 44.19% over the last twelve months as of Q1 2024, with a gross profit margin of -762.26%, indicating significant challenges in profitability. Additionally, the stock is trading near its 52-week low, with a price 14.2% of its 52-week high, reflecting investor concerns and market volatility.
However, there are optimistic signs as well. InvestingPro Tips suggest that Nikola holds more cash than debt on its balance sheet, which is a positive indicator of financial stability. Moreover, analysts have revised their earnings upwards for the upcoming period, hinting at potential improvements in the company's financial performance.
For investors looking to delve deeper into Nikola's financials and stock performance, InvestingPro offers additional insights, with 19 more tips available for those interested. To access these valuable tips, visit https://www.investing.com/pro/NKLA and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's clear that while Nikola is making strides in the zero-emission vehicle market, investors should keep a close eye on the company's financial metrics and market performance to make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.