Nikola Corporation NKLA shares have made dramatic moves since the electric vehicle developer went public via a reverse merger in June.

The stock was trading more than 10% higher Monday on news that the company has received a contract for 2,500 fully electric garbage trucks.

The order comes from Republic Services, Inc. RSG, with the option to increase the order up to a total of 5,000 vehicles. 

The electric trucks are expected to handle up to 150 miles and 1,200 cans on a single charge. Garbage trucks travel approximately 130 miles per day. 

NKLA Price Action: Nikola shares were trading 18.76% higher at $43.61 at last check Monday. 

Benzinga's Take: Garbage trucks seem like a great use case for electric vehicles. They don't travel far, make frequent stops and travel at slow speeds.

Diesel trucks are also extremely loud and emit a high amount of carbon. All of the negatives could be solved with an electric version.

On top of that, any company using electric trucks are looking to save a lot of money on fuel. It remains to be seen if these new trucks will have the option of hydrogen fuel like Nikola's pickup and semi offerings.

Photo courtesy of Nikola.