Nikola and its stock are back in the news as its stock crashes once again. This time around it is because of the cancellation of a contract of 2,500 garbage trucks from Nikola for Republic Services.
The deal had been signed in August and has unraveled in December. Although Nikola said that it was a mutual decision, the startup has been facing SEC troubles and its CEO recently stepped down. Mark Russell, Nikola CEO released a statement: “This was the right decision for both companies given the resources and investments required.”
He added, “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.”
The cancellation of this huge deal caused the stock of this electric vehicle startup to crash by 10% in pre-market trading. Other cancellations in the recent past, including a mega deal with General Motors, had also caused a stock crash.
The company also said in a statement that in 2021 it will begin U.S, deliveries of its Nikola Tre battery-electric-semi trucks and will also build its first commercial hydrogen station. In 2023 Nikola hopes to begin production of its fuel-cell-electric-semi-trucks, at its facility in Coolidge, Arizona.