It appears that Nikola has been dealt yet another blow in its never-ending fall from grace, as the company on Wednesday announced that a partnership to produce electric garbage trucks had been terminated.
According to a statement by Nikola CEO Mark Russell, the joint partnership between the embattled electric truck company and Republic Services, a waste removal and disposal company was terminated after it was determined that their plans for combining design concepts with numerous new technologies was no longer feasible due to unexpected costs and increased development time. Republic Services confirmed the termination, noting that the company still plans on continuing its collaborations with other truck manufacturers including Mack, Peterbilt, and Romeo Systems… just not Nikola.
Back when the deal was revealed in August, Nikola’s shares soared by 22%, but following a series of scandals and partnership terminations, the electric truck maker’s shares currently sit at a mere $15.03 as of Wednesday – after dropping by yet another 9% subsequently after the Republic Services joint venture was terminated. Indeed, earlier in the year, Nikola was considered one of the hottest stocks on Wall Street at one point, but after shortseller Hindenburg Research exposed several allegations of fraud, the company’s fall from grace soon ensued.
It was revealed that Nikola’s former CEO Trevor Milton made false statements regarding the company’s technology in order to secure partnerships with major auto companies. Following the allegations and subsequent investigations by the SEC, Milton soon stepped down and was replaced by Mark Russell. At the time, Nikola was in the midst of securing a $2 billion deal with GM, but even that automaker backed out, and instead agreed to a significantly lesser, nonbinding memorandum of understanding to supply Nikola with fuel-cell technology.
Information for this briefing was found via Nikola. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
