Nikola Dumped After Garbage Truck Order Canceled

Nikola Dumped After Garbage Truck Order Canceled

Nikola shares plunged more than 10% pre-market after an order for 2,500 garbage trucks it previously had in place with Republic Services was canceled. The stock had previously rallied to $44 on news of the announcement back in August of this year. This morning, the stock was trading as low as 14%, a 12% drop.

“The electric vehicle maker said it has discontinued its collaboration with Republic Services Inc,” MarketWatch wrote on Wednesday morning.

A joint statement between the two companies said: “After considerable collaboration and review, both companies determined that the combination of the various new technologies and design concepts would result in longer than expected development time, and unexpected costs. As a result, the program is being terminated resulting in the cancellation of the previously announced vehicle order.”

“The goal of the collaboration was to design and build an industry-first fully integrated refuse truck based on a zero-emissions battery-electric drive platform and body while also integrating multiple new systems into a new state-of-the-art vehicle,” Nikola said in its release.

But new Nikola CEO Mark Russell called the termination of the deal “the right decision”:

“This was the right decision for both companies given the resources and investments required,” said Nikola CEO Mark Russell. “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.”

And so, the Nikola Garbage Truck goes the way of the Nikola Badger; neither existed to begin with, and neither may ever exist. 

Tyler Durden
Wed, 12/23/2020 – 08:58

This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!