Proterra to Supply EV Batteries to Nikola

Nikola (NKLA) has inked a multi-year supply agreement with Proterra (PTRA), an innovator in commercial vehicle electrification technology. Under the terms of the deal, Proterra will power Nikola zero-emission trucks with its industry-leading battery technology.

Nikola is a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles (EV) and vehicle components.

Nikola – Proterra Partnership

Proterra battery technology will be integrated into Nikola’s Tre battery electric vehicle (BEV) and the Tre fuel cell electric vehicle (FCEV). The first Nikola electric trucks featuring Proterra’s battery technology should be out in the fourth quarter of this year, with the first prototype systems expected in the second quarter.

The two companies are coming together to address the pollution caused by Class 8 trucks, which are a major player in the U.S. economy. By joining forces, they hope to accelerate the decarbonization of the trucking industry through electrified trucks.

According to Nikola CEO Mark Russell, Proterra is an ideal partner that should allow them to meet strong demand for the Nikola Tre BEV and FCEV. The executive expects the company to enable industry-leading EV battery solutions.

Analysts’ Take

Last week, RBC Capital analyst Joseph Spak reiterated a Hold rating on the EV stock, with an $11 price target implying 19.18% upside potential to current levels.

Consensus among analysts is a Hold based on 4 Buys. The average Nikola price target of $13.67 implies 48.10% upside potential to current levels.

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