Nikola and Republic Services abandon their electric garbage truck

But Nikola’s share price fell 10% on Wednesday morning after the transaction was publicly canceled. Wedbush analysts gave Nikola a rating of “underperformance” in response to the announcement, which the company said was a “punch” for investors who relied on the Republic Services agreement to change the game for the struggling startup. .

“Given the wave of bad news for Nikola over the past few months, this was not the news investors wanted to see under their Christmas tree,” Wedbush analyst Dan Ives wrote in a note to investors on Wednesday morning. “The company still has a Kilimanjaro as a climb up to gain back street credibility in 2021, with today’s news seen as another step backwards,” the company added.

Nikola said both companies agreed to cancel the deal after agreeing to combine new technologies and design concepts to make electric trucks last longer and cost more than originally anticipated.

“This was the right decision for both companies, given the resources and investments required,” Nikola CEO Mark Russell said in a written statement.

Republic Services confirmed by email that its agreement with Nikola has been “terminated,” noting that it is continuing its electric vehicle partnerships with truck manufacturers Mack, Peterbilt and California, launching Romeo Systems batteries, in addition to purchasing more vehicles next year .

“We continue to believe that electrification is the future,” the waste management company said. We believe that the opportunity to learn from and partner with Romeo will continue to provide additional opportunities to support our electrification strategy. “

In September, Nikola founder Trevor Milton was accused of fraud by financial research firm Hindenberg Research for allegedly exaggerating the capabilities of the Nikola One hydrogen fuel cell electric semi-truck, although CNN did not independently verify claims in its report. Hindenburg. Milton resigned as chief executive of the company and one of the board members following the scandal.

The Securities and Exchange Commission and the Justice Department summoned Milton and Nikola on November 9. The company’s shares fell by 20% at the end of November General engines (GM) he gave up his plans to make the Nikola’s Badger pickup.

Wall Street has been intensive in electric vehicle manufacturers for much of 2020, despite failures for some of the key vehicle manufacturers, as transportation companies work to better meet government emissions standards.

Nikola also said on Wednesday that US deliveries of Tre battery electric semi-trucks will begin in 2021. The company plans to launch its first commercial hydrogen station next year. Production of electric fuel cell semi-trucks with hydrogen is scheduled to begin in 2023.

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