By Sam Boughedda
Investing.com — Shares of Nikola Corp (NASDAQ:NKLA) rallied 8% at the start of Thursday's session after Saia (NASDAQ:SAIA) LTL Freight, a less-than-truckload company, said it signed a letter of intent to purchase or lease 100 Nikola Tre heavy-duty battery electric vehicles.
The plan is part of a collaboration between the two companies to accelerate the implementation of heavy-duty electric transportation trucks. However, the deal to purchase or lease the trucks is still subject to the completion of a demonstration program.
The demonstration program includes three battery-electric vehicle trucks to be operated in separate locations across the Saia network. The program is expected to begin in the first half of 2022.
The deliveries of the 100 production vehicles are forecast to occur between 2022 and 2024, with an initial 25 targeted for 2022.
"We are thrilled that Saia has chosen to work with us," said Nikola President, Energy and Commercial Pablo Koziner. "Saia is a leader in the freight and logistics industry, and will be a key development partner for Nikola."
Saia President and CEO Fritz Holzgrefe said: "We are excited to partner with Nikola Corporation as we work to integrate battery-electric trucks into our tractor fleet."
On Wednesday, USA Truck (NASDAQ:USAK) said it entered into a letter of intent to purchase 10 Nikola Tre BEV trucks.