Nikola, IVECO to Supply Electric Trucks to Hamburg Port

Nikola Corporation (NKLA) and CNH Industrial’s (CNHI) brand IVECO have inked a memorandum of understanding with the Hamburg Port Authority AoR (HPA). The two companies have also set up a manufacturing facility in Ulm, Germany as part of a joint venture. NKLA shares fell 1.51% to close at $9.76 on September 15.

Nikola designs and manufactures zero-emission vehicles. It also works on energy storage systems, and hydrogen station infrastructure.

As part of the European joint venture, Nikola and IVECO are to test and implement heavy-duty EVs, and charging infrastructure at the Hamburg port. Additionally, they are to deliver up to 25 “Nikola Tre battery-electric vehicles (BEV)”. (See Nikola stock charts on TipRanks)

Initially, Nikola and IVECO are to test the electric trucks around the port’s logistics and transportation operations. Additionally, they are to work on charging stations for the electric trucks. The second phase will focus on incorporation of the BEV vehicles in the port, as well as setting up of charging stations.

The Nikola Tre BEV is designed for high performance and long haul transport with zero-emission. It is based on the IVECO S-WAY truck platform and features Nikola’s advanced electric and fuel cell technology.

The integration of Nikola Tre BEV at the port affirms Hamburg port’s push to be environmentally friendly, in line with the European Union’s push for carbon neutrality by 2050.

Nikola CEO Mark Russell stated, “Nikola applauds the sustainability goals of the Port of Hamburg and is proud to be working with them on this project.”

Recently, J.P. Morgan analyst Bill Peterson reiterated a Hold rating on the stock, and lowered his price target to $12 from $21, implying 18.9% upside potential to current levels.

According to the analyst, demand for zero carbon emission trucks could be held back due to several factors, including range concerns, charging times, and lack of charging infrastructure. In addition, the analyst expects stiff competition in the fuel cell trucks segment in the coming years.

Consensus among analysts is a Hold based on one Buy and six holds. The average Nikola price target of $13.14 implies 34.6% upside potential to current levels.