Nikola Corporation (NKLA) announced the addition of five independent dealers with over 51 locations in 9 states across the U.S. The move is aimed at increasing its nationwide Class 8 truck sales and service coverage. Shares jumped almost 9% on the news, closing the day up 2.7% at $14.26 on July 15.
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Nikola is a designer and manufacturer of heavy-duty commercial battery-electric vehicles (BEV), fuel-cell electric vehicles (FCEV), and energy infrastructure solutions. (See Nikola stock charts on TipRanks)
The company is in the process of ramping up its distribution network. As the first step to its expansion, Nikola partnered with RIG360 Service Network in April to provide sales and service products for commercial customers at more than 65 of its dealer locations.
The addition of the five independent dealers is the second phase of its plan and is expected to bring Nikola’s nationwide sales and service locations to a total of 116.
The company’s Energy and Commercial President Pablo Koziner said, “These dealers will work closely with customers in helping them maximize operational efficiencies, energy management, vehicle uptime, and overall industry adoption in BEV and FCEV vehicles.”
The company’s dealer network expansion includes HOLT Truck Centers, Empire Truck & Trailer, Wagner Equipment Co., Ring Power, and Carter Machinery.
The stock has an overall Hold consensus rating based on 1 Buy and 4 Holds. The average Nikola price target of $14.50 implies 1.7% upside potential to current levels. Shares have lost 11.3% year to date.
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