LOGO

nikola’s stock crashes after announcing cancelation of contract with republic services for 2,500 garbage trucks

AVATAR Matt Burns
Matt Burns
Editorial Director, Insight Media Group
•December 23, 2020
Topics:electric vehiclesGeneral-MotorsNikolaNikola MotorTransportationU.S. Securities and Exchange Commission
nikola’s stock crashes after announcing cancelation of contract with republic services for 2,500 garbage trucks

The challenges facing Nikola continue to mount. The company has now announced the cancellation of its agreement with Republic Services for the production of 2,500 waste management vehicles. Initially revealed in August, the arrangement involved Nikola manufacturing these trucks starting in 2023, with planned on-road evaluations in 2024. This represents the most recent agreement to fall apart for Nikola as it works to address the fallout from recent damaging disclosures.

Nikola reports that the decision to end the partnership was made jointly by both organizations, although it seems likely that Nikola’s ongoing issues with the Securities and Exchange Commission (SEC) played a significant role in Republic Services’ assessment.

“This outcome is beneficial for both organizations considering the necessary resources and financial commitments,” stated Nikola Chief Executive Officer Mark Russell in an official release. “We acknowledge and appreciate Republic Services’ dedication to providing environmentally sound and sustainable solutions to its clientele. Nikola continues to prioritize the development and delivery of our battery-electric and hydrogen fuel-cell powered commercial trucks, alongside the supporting energy infrastructure.”

This news has caused Nikola’s stock price to decrease by 10% during pre-market trading. Should this decline persist when the stock market opens, Nikola will reach its lowest valuation since its substantial gains experienced during the summer.

The agreement with Republic Services was initially considered a significant achievement for the electric vehicle company. It was viewed as a sign of growing acceptance within the industry, preceding a substantial $2 billion investment from General Motors. However, that deal was also terminated following the emergence of critical information that prompted an SEC investigation and the resignation of the company’s chairman.

According to Nikola, shipments of the Nikola Tre battery-electric trucks are scheduled to commence in the United States in 2021, and the company anticipates starting construction on its inaugural commercial hydrogen fueling station during the same year. Furthermore, the company projects the production of its hydrogen fuel-cell electric trucks to begin in 2023 at its facility in Coolidge, Arizona.

 

#Nikola#stock crash#Republic Services#garbage trucks#electric vehicles#EV

Matt Burns

Matt Burns is an experienced journalist specializing in technology, currently serving as Editorial Director at Insight Media Group. He previously held the position of Managing Editor at TechCrunch. Within his role at Insight Media Group, he oversees content strategy and manages programs for a portfolio of rapidly expanding technology-focused publications. Prior to this, he dedicated over fifteen years to TechCrunch, beginning as a writer and progressing to Managing Editor, where he played a key role in the newsroom’s growth and the organization of events like Disrupt and other TechCrunch conferences. He also contributed articles to Engadget in his earlier career. Matt is also a co-founder of the Resilience Conference, a series of events exploring the connections between national defense, security, and innovative startups. He is responsible for developing the conference program, facilitating discussions, and establishing “Launch @ Resilience,” a platform for showcasing emerging companies developing technologies for national security. Throughout his career, he has covered and led discussions on topics including artificial intelligence, transportation technology, cutting-edge innovations, and the challenges faced by technology businesses. He has conducted interviews with prominent figures such as global leaders, leading investors, startup founders, and CEOs of publicly traded companies. A native of Michigan with significant experience in Silicon Valley, he combines a Midwestern perspective with a keen editorial judgment. Outside of his primary roles, he collaborates with teams to refine their messaging and assess market entry strategies, and enjoys camping near Lake Michigan when his schedule allows.
Xin
Matt Burns