AJR Trucking, a leading carrier for the United States Postal Service (“USPS”) and a major drayage carrier operating in the Ports of Los Angeles and Long Beach, announced the execution of a purchase order for 50 Nikola Tre hydrogen fuel cell electric vehicle (“FCEV”) trucks from Tom’s Truck Centers, a member of the Nikola Corporation (Nasdaq: NKLA) sales and service dealer network. Deliveries are expected to take place between Q4 2023 and Q1 2024.

Nikola (Nasdaq:  NKLA), and its Southern California dealer, Tom’s Truck Centers, will support AJR Trucking in securing its voucher application to CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (“HVIP”) program with the expectation of receiving $270,000 per FCEV in point-of-sale incentives. An additional $40,000 in federal tax credits is expected from the Inflation Reduction Act.

AJR Trucking and Nikola will explore the opportunities to deploy Nikola’s 10,000 psi (700 bar) mobile fueling solution at AJR Trucking properties in Compton, Calif. and Santa Clarita, Calif. to provide convenient and seamless fueling for the FCEVs. AJR Trucking expects to receive competitively priced hydrogen fuel delivered by Nikola to its terminals in support of the FCEV deployment. Net of the various incentives, AJR Trucking anticipates rough cost parity with its existing fleet of trucks in its postal service and drayage operations.

“We are confident the future of trucking is zero-emissions, and based upon our operational needs, the Nikola Tre FCEVs were the only zero tailpipe emission vehicles that could meet our range, performance, and cost targets,” said Jack Khudikyan, owner of AJR Trucking. “We are excited to be at the forefront of the deployment of this new technology and to be able to offer our customers zero-emissions freight solutions. We look forward to working with Nikola and USPS to integrate the FCEVs into our mail hauling operations starting in Southern Calif. and envision expanding the use of these trucks throughout our operations nationwide.”

“We are excited about our partnership with AJR Trucking for the deployment of Nikola’s Tre FCEV trucks and hydrogen fueling solutions,” said K.C. Heidler, Tom’s Truck Center President and CEO. “We look forward to partnering with AJR Trucking as we support the expansion of their FCEV fleet and hydrogen fueling requirements throughout Calif. and into their operations for USPS nationwide.”

AJR Trucking has been performing mail hauling operations for USPS for over 30 years and prides itself on being a leader in the deployment of the latest truck technology and supporting the advancement of alternatively fueled vehicles into its fleets.

AJR Trucking pioneered some of the first compressed natural gas (CNG) trucks in operation for the USPS and in 2022 placed the largest order for Class 8 battery-electric vehicles from Kenworth to date. Additionally, AJR Trucking has gone beyond minimizing tailpipe emissions by investing in an on-site CNG fueling station in partnership with US Gain at its facilities in Compton, Calif., where AJR has been making negative carbon intensity renewable natural gas available to its fleet and for public consumption. AJR sees FCEVs as the next step forward, given their zero tailpipe emissions, long range, and fast fueling times and will continue working with its customers to offer additional zero-emissions freight services to support their carbon reduction targets.