The Nikola Undo continues. Today the company announced the termination of its contract with Republic Services for 2,500 garbage trucks. Already announced in August, Nikola had built garbage trucks in 2023 and planned tests on the road for 2024. This is the latest deal Nikola has to resolve as he attempts to fix the problem after devastating reports.
Nikola said the split between the two companies was mutual, though it's hard to imagine that Nikola’s SEC issues didn't weigh heavily on Republic Services.
"This was the right decision for both companies given the resources and investment required," Nikola CEO Mark Russell said in a released statement. “We support and respect Republic Services' commitment to providing environmentally conscious and sustainable solutions for their customers. Nikola continues to focus on delivering our battery electric and fuel cell electric utility vehicle programs, as well as the energy infrastructure to support them. "
News of this deal drops Nikola stock by 10% in pre-market trading. If this level continues at the opening of the exchange, Nikola will trade at its lowest level after the monumental surge in the summer months.
The deal with Republic Services was originally a winning banner for the once soaring electric vehicle startup. The Republic Services contract was signaled as general acceptance of the company and came about before General Motors' $ 2 billion investment. This deal is also being canceled after several key revelations about the company that led to an SEC investigation and the resignation of the company's chairman.
In a statement, Nikola said that shipments of battery-electric tractor units from Nikola Tre in the US will begin in 2021 and the company expects to lay the foundation for its first commercial hydrogen station in 2021 as well. And then, in 2023, the company expects to produce its fuel cell electric tractor units in Nikolas Coolidge, Arizona Facility.