Alta Equipment Group (NYSE: ALTG), a leading provider of construction and material handling equipment, today announced that it has been awarded the Arizona sales and service territory for Nikola Corporation. The ZEV manufacturer will host its Analyst Day later today, and its Investor Day on March 24th. On those days, Nikola management will host a presentation on the company’s leading Class 8 truck program and Energy business.
This agreement further expands Alta’s dealer territory with Nikola beyond the NY, NJ, eastern PA and New England markets, as announced in August of 2021, and will replace Empire Transport in Arizona.
With over 37 years of experience, Alta is well-established in the midwest and the northeast with over 60 dealership locations supporting other OEMs. With a proven track record of successful growth, Alta has a clear vision for the potential of the Nikola products (i.e., battery-electric and hydrogen fuel cell electric vehicles, mobile charging trailers, hydrogen fueling infrastructure, etc.), to grow their eMobility vertical by fulfilling its commitment to clean technologies.
We are excited to be granted this new territory as it gives us the opportunity to deepen our relationship with Nikola, especially given their headquarters and US manufacturing facility is in Arizona. It is also significant because we believe Arizona is a market prime for electric vehicle growth.
Ryan Greenawalt, Chief Executive Officer of Alta
The first Nikola product Alta will sell is the Tre battery-electric vehicle (BEV). With an expected range of up to 350 miles, the Tre BEV has a cabover design ideal for metro-regional applications because of improved visibility and maneuverability.
“As Nikola expands its BEV production in 2022 from our Coolidge, Arizona manufacturing facility, a great hometown dealer to sell and service our products is incredibly valuable,” said Pablo Koziner, President of Nikola Energy and Commercial. “Alta continues to be committed to our shared vision and is driven to grow this territory as yet another step towards a zero-emissions future. We are grateful for Alta’s enthusiasm and passion for our products and our partnership.”
Recently, the company finished phase 1 of Coolidge Factory (Arizona) allowing the company to produce 2,500 trucks per year. Construction is underway for Phase 2 with expected completion in Q1 2023.
On February 28th, DA Davidson Analyst Michael Shlisky reiterated Nikola’s Neutral rating and downgraded the price target from $12 to $8. On February 25th, J.P. Morgan Chase and Co. Analyst, Bill Peterson, lowered Nikola’s price target from $12 to $10 representing an upside of 24.38%. The analyst reiterated Nikola’s Neutral rating.
Recently, the company announced that it has appointed Lynn Forester de Rothschildto its Board of Directors. Forester de Rothschild is a co-founder of Inclusive Capital Partners (“In-Cap”) and will now represent the group on the board, replacing In-Cap co-founder, Jeff Ubben.