Westport Fuel spikes 50% after Amazon orders more than 1,000 of the company's natural-gas engines for its growing truck fleet

<p><img src="https://static2.businessinsider.com/image/60216fd867d1e300113c4d0a-863/GettyImages-1208650169.jpg" border="0" alt="amazon warehouse truck shipping" data-mce-source="ANGELA WEISS/AFP via Getty Images"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Shares of Westport Fuel Systems soared nearly 50% to a five-year high on Monday after the company agreed to supply natural-gas truck engines to Amazon's shipping fleet.</p><p>The e-commerce giant has ordered over 1,000 engines from Westport as a part of a multi-year rollout, boosting Amazon's growing truck fleet. The trucks will be supplied by a <a href="https://www.businessinsider.com/amazon-will-use-hundreds-of-trucks-that-use-natural-gas-2021-2">joint venture</a> between Vancouver, Canada-based Westport and Columbus, Indiana-based Cummins Inc., a power technology company.</p><p><em><strong>Read more:</strong> <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-gamestop-rally-gains-continue-goldman-strategist-gme-2021-2-1030055653">GameStop's Reddit-drive surge exposed shocking market vulnerabilities - but overall stock gains will be unimpeded as profit growth surges, Goldman Sachs says</a></em></p><p>Craig-Hallum analyst Eric Stine called the agreement "arguably one of the most significant events for natural gas for transportation in many years." Stine told<a href="https://thefly.com/landingPageNews.php'id=3242670&amp;headline=WPRT;AMZN;CMI;UPS-Westport-target-raised-to--following-Amazon-truck-order-says-CraigHallum"> The Fly</a> that "this order will be solidly additive" to Westport's EBITDA. The analyst raised his price target on Westport from $12 to $24.</p><p>Amazon, which has been exploring new ways to reduce carbon emissions,<a href="https://markets.businessinsider.com/news/stocks/amazon-buying-hundreds-of-compressed-natural-gas-trucks-reuters-1030050713%20The%20Seattle-based%20company%20plans%20to%20expand%20the%20vehicles%20in%2015%20more%20cities%20in%202021.%20The%20aim%20is%20to%20have%2010,000%20on%20the%20road%20by%202022%20and%20100,000%20by%202030."> recently said</a> it aims to have 50% of all its shipments achieve net-zero emissions by 2030, aiming to apply that goal to the entire company by 2040.</p><p>"Amazon is excited about introducing new sustainable solutions for freight transportation and is working on testing a number of new vehicle types including electric, CNG and others," the company said in a statement.</p><p>The online retailer<a href="https://markets.businessinsider.com/news/stocks/amazon-buying-hundreds-of-compressed-natural-gas-trucks-reuters-1030050713"> reportedly</a> delivers 2.5 billion packages per year.&nbsp;</p><p>In October last year, Amazon <a href="https://www.businessinsider.com/amazon-rivian-unveil-first-custom-electric-delivery-vehicle-2020-10">revealed</a> its first planned custom electric-delivery vehicles made by startup Rivian, which could possibly hit the road delivering packages in 2021. The electric vehicle maker, backed by Amazon, just <a href="https://media.rivian.com/rivian-announces-2-65-billion-investment-round/">announced </a>another major funding round in January 2021, cementing its spot as one of Tesla's formidable challengers.</p><p>Westport Fuel Systems shares traded at $12.25 at 12:34.PM E.T. on Monday.&nbsp;</p><p><a href="https://www.businessinsider.com/westport-fuel-stock-price-spikes-amazon-order-natural-gas-engines-2021-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/melissa-maker-clean-your-home-quickly-cleaning-expert-2017-4">A cleaning expert reveals her 3-step method for cleaning your entire home quickly</a></p>
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