Nikola And Total Transportation Services Inc. Sign LOI For 100 Nikola Trucks
Nikola Corporation (NASDAQ: NKLA) announced a collaboration with Total Transportation Services Inc. (TTSI) to enhance zero-emission transportation at the Los Angeles/Long Beach port. The partnership includes a Letter of Intent for the order of 100 Nikola Class 8 battery-electric (BEV) and fuel-cell electric vehicles (FCEV). A four-truck pilot will begin in 2022, with the potential for 30 BEVs and 70 FCEVs following, pending TTSI securing government funding. TTSI aims to reduce nitrogen-oxide emissions, addressing California's clean-air initiatives.
- Collaboration with TTSI to improve zero-emission transportation.
- Initial order of 100 Nikola trucks, including BEVs and FCEVs.
- Pilot program starting in 2022 demonstrates operational commitment.
- The collaboration is subject to negotiation and execution of documentation, indicating potential delays.
- Dependence on TTSI securing government funding for future orders introduces uncertainty.
PHOENIX, May 6, 2021 /PRNewswire/ -- Nikola Corporation (NASDAQ: NKLA), a global leader in zero-emissions transportation and infrastructure solutions, today announced a collaboration with Total Transportation Services Inc. (TTSI), one of Southern California's prominent port trucking companies, to expedite zero-emission transportation at the port of Los Angeles/Long Beach. The collaboration includes vehicle trials and a Letter of Intent (LOI) to order 100 Nikola Class 8 battery-electric vehicle (BEV) and fuel-cell electric vehicle (FCEV) semi-trucks. The collaboration is subject to negotiation and execution of definitive documentation acceptable to the parties.
The Nikola Tre BEV is designed for local deliveries up to 350 miles. The Nikola Tre FCEV truck is targeted for distances up to 500 miles, and is expected to address the majority of the North American regional market, especially when additional freight hauling capacity and quick fueling are required by fleet operators.
"The Nikola Tre trucks are exactly the type of zero-emission solution we need to be using at the port," said Vic LaRosa, president of TTSI. "Our trucks operate for 18-20 hours a day making the benefits of the Nikola portfolio a perfect match for our needs. The expected availability of the BEV aligns with our desire to reach our sustainability goals quickly and the FCEV is ideal for longer-range applications. Nikola's value proposition of the truck and hydrogen fuel bundled together made this partnership even more appealing to our leadership team."
The LOI is for 100 zero-emission trucks beginning with a four-truck pilot slated to start in the first half of 2022 and consisting of two BEVs and two FCEVs. Based on satisfactory completion of the vehicle trials and subject to TTSI obtaining certain government funding, thirty BEVs are projected to follow later in 2022, and 70 FCEVs are anticipated to start in 2023.
According to TTSI, in any given month 13,000 to 14,000 trucks call at the port of Los Angeles/Long Beach, emitting roughly 2,600 tons per year of smog-causing nitrogen-oxide emissions. This location and transportation use case represent one of the largest opportunities in California to make a significant impact for the transition to sustainable transportation. TTSI has been on the forefront of this transition with early adopter status and will partner with Nikola Corporation to transition both BEVs and FCEVs into operation on a trial basis.
"TTSI's decision to utilize both Nikola BEV and FCEV vehicles speaks to their forward-looking and strategic mindset in covering a variety of hauling distances and loads, while still contributing to California's clean-air initiatives," said Nikola's Global Head of BEV business unit, Michael Erickson. "We applaud TTSI's commitment to a zero-emission future and are eager to help fulfill that vision with Nikola zero-emission vehicles."
"The drayage and port operations present an excellent use case for BEV and FCEV trucks where operational efficiency cannot be compromised," added Nikola's Global Head of FCEV business unit, Jason Roycht. "We hope to jointly demonstrate with TTSI the advantages of both technologies during vehicle trials at the port of Los Angeles/Long Beach. The planned conversion of the TTSI fleet over the next several years will provide a roadmap to implement zero-emission trucking that we hope many in Southern California will follow."
ABOUT NIKOLA CORPORATION
Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.
ABOUT TOTAL TRANSPORTATION SERVICES INC. (TTSI)
TTSI is a leading provider of logistics services with distinct expertise in distributing imports within the US and Canada. The company is headquartered in Southern California and also has operations in Southern and Northern California, Tacoma, Virginia, and Chicago. For more information, visit www.ttsi.com.
FORWARD LOOKING STATEMENTS OF NIKOLA CORPORATION
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the benefits of the collaboration; the benefits of FCEV trucks and BEV trucks in drayage and port operations; the excepted timing of delivery of trucks; and the expected timing, features and specifications of the company's FCEV and BEV trucks. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to, the ability of the parties to enter into definitive documentation for the collaboration and the terms of any such agreement; the failure to realize the anticipated benefits of the letter of intent or any definitive agreement; the ability of TTSI to obtain government funding for the trucks; design and manufacturing changes and delays; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal, regulatory and judicial proceedings to which Nikola is, or may become a party; demand for and customer acceptance of Nikola's trucks; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the rollout of Nikola's business and the timing of expected business milestones; the effects of competition on Nikola's future business; the availability of capital; risks associated with changes in accounting treatment or accounting standards; and the other risks detailed from time to time in Nikola's reports filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2020 and other documents Nikola files with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and Nikola specifically disclaims any obligation to update these forward-looking statements.
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SOURCE Nikola Corporation
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