Nikola slides 12% after it ends collaboration on electric garbage truck with Republic Services
- Nikola Corp. fell as much as 12% on Wednesday after the company said it would end its collaboration with Republic Services to develop and produce an electric garbage truck.
- In August, Nikola said it received an order of 2,500 electric garbage trucks from Republic Services with the option to increase the order up to 5,000 units.
- On-road testing of the garbage truck was expected to begin in early 2022, with production deliveries expected in 2023, but unanticipated costs have sidelined the project.
- "This was the right decision for both companies given the resources and investments required," Nikola CEO Mark Russell said.
- Watch Nikola trade live here.
Nikola's collaboration with Republic Services on the development and production of an electric garbage truck has ended, Nikola Corp. said in a statement on Wednesday.
Shares of Nikola fell as much as 12% in Wednesday trades following the announcement.
In August, Nikola said it received a minimum order of 2,500 electric garbage trucks from Republic Services, the second largest waste management services provider in the country. The August agreement included the option for Republic Services to increase the order to up to 5,000 units.
On-road testing of the electric garbage truck was expected to begin in early 2022, with production deliveries expected by 2023, Nikola said in August.
The project was sidelined due to a longer than expected development time and unexpected costs. The termination of the collaboration will also result in the cancellation of the previously announced vehicle order of 2,500 units, Nikola said.
"This was the right decision for both companies given the resources and investments required," Nikola CEO Mark Russell said.
The move comes after General Motors scrapped its planned $2 billion investment in Nikola and instead struck a manufacturing partnership with the company last month.