Nikola Corp (NASDAQ:NKLA) has struck a deal with Canada’s ITD Industries to expand the dealer network for its Class 8 truck sales and service into Canada.
In a fireside chat, the EV truck firm’s recently-appointed CEO Steve Girsky also addressed concerns about a recall of trucks after a series of battery fires in August and also announced that first deliveries of the hydrogen-fuel-cell-powered Class 8 trucks are set to begin as early as late September.
The company’s shares jumped 8.7% to $1.25 in early Friday morning trading.
In a statement on the tie-up with ITD, which will become Nikola’s first Canadian dealer, the company said Canada is a premium market for its vehicles due to a supportive population, industry and government, and its ambitious plans to transition towards hydrogen and cleaner fuels to address the impacts of climate change.
“Canada's zero-emission vehicle friendly environment for Class 8 trucks, fueled by attractive incentives and its ambitious carbon reduction goals, makes it a strategic market for the future of transportation," Girsky commented.
"What makes this partnership even more ideal is the shared dedication to our customers. ITD's commitment to product innovation and customer service aligns perfectly with our mission to empower fleets and drive success as they transition to a more sustainable future.”
The company said ITD's Toronto-based premier Nikola showroom and service operations will be integrated into its manufacturing facility and features 55-foot ceilings and more than 78,000 square feet.
“Our ability to now include Nikola's Class 8 zero-emission trucks in our growing product line-up is the perfect complement to our investments in electric trailer technology and a natural next step in our company's ambition to bring promising clean transportation solutions to the Canadian marketplace," said ITD CEO Benny Di Franco.
Nikola said it expects significant growth in Canada with eligibility received for the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program. The iMHZEV program offers Canadian organizations up to C$200,000 in incentives towards the purchase or lease of the Nikola hydrogen fuel cell electric truck and up to C$150,000 in incentives towards the purchase or lease of the Nikola battery-electric truck.
Additionally, the company said it is eligible for the Clean BC Go Electric Rebates in British Columbia with C$150,000 in incentives towards the purchase or lease of both the Nikola hydrogen fuel cell and battery-electric truck. This provincial incentive is stackable with the iMHZEV federal incentive.
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