Nikola’s stock crashes after announcing cancelation of contract with Republic Services for 2,500 garbage trucks
The undoing of Nikola continues. Today, the company announced the termination of its contract with Republic Services for 2,500 garbage trucks. Announced back in August, the deal had Nikola building garbage trucks in 2023 with on-road testing scheduled for 2024. This is the latest deal to unravel for Nikola as it tries to patch up following recent devastating reports.
According to Nikola, the separation of the two companies was mutual, though it’s hard to picture Nikola’s SEC troubles didn’t weigh heavily upon Republic Services.
“This was the right decision for both companies given the resources and investments required,” Nikola CEO Mark Russell said in a released statement. “We support and respect Republic Services’ commitment to achieving environmentally responsible, sustainable solutions for their customers. Nikola remains laser-focused on delivering on our battery-electric and fuel-cell electric commercial truck programs, and the energy infrastructure to support them.”
News of this deal is sending Nikola’s stock down 10% in pre-market trading. If this level holds upon the stock market’s open, Nikola will be trading at its lowest levels following its monumental rise over the summer months.
The deal with Republic Services was originally a victory banner for the once high-flying electric vehicle startup. Signaled as mainstream acceptance of the company, Republic Services’ contract came before a mega $2 billion investment from General Motors. That deal is also cancelled following several key revelations about the company that lead to an SEC investigation and the company’s chairman stepping down.
In a statement, Nikola says deliveries of Nikola Tre battery-electric semi-trucks will begin in the U.S. in 2021, and the company expects to break ground on its first commercial hydrogen station in 2021. And then in 2023, the company expects to produce its fuel-cell-electric semi-trucks at its Coolidge, Arizona facility.
Source : TechCrunch