Nikola Corp shares were up in the beginning of the Thursday session but since then have erased gains after the firm announced a partnership with PGT Trucking, a transportation provider.
The agreement between Nikola and PGT comprises a letter of intent (LOI) to lease 100 Nikola Tre heavy-duty fuel cell electric vehicles (FCEVs) after completing a demonstration programme.
"We believe our FCEVs will help PGT further their objectives to continuously improve driver experience, reduce their carbon footprint and increase the efficiency of their operations while providing great value to their customers," said Pablo Koziner, Nikola's president of Energy and Commercial.
Scheduled maintenance and hydrogen fueling solutions will be included in the leasing arrangements, which are still being finalised.
Nikola claims that the Tre FCEV will have a range of up to 500 miles and that deliveries to PGT would begin in 2023 after production begins at its Arizona manufacturing facility.
"This partnership will give us the opportunity to offer progressive transportation solutions to our customers, while aligning with corporate-driven sustainability initiatives, and reducing their carbon footprint using innovative energy sources," PGT Trucking president Gregg Troian said.