Nikola Shares Drop as Company Cancels Contract with Republic Services for 2,500 Garbage Trucks

Shares of electric vehicle maker Nikola dropped about 18% in the last two days of trading after Wall Street learned that the company had terminated its contract with Republic Services for 2,500 garbage trucks.

The deal had initially been announced back in August, with Nikola building garbage trucks in 2023 with on-road testing scheduled for 2024.

Nikola said the separation of the two companies was mutual.

“This was the right decision for both companies given the resources and investments required,” Nikola CEO Mark Russell stated.

“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.”

Republic Services’ contract was before the $2 billion investment from General Motors, which is also cancelled following several key revelations about the company that lead to an SEC investigation and the company’s chairman stepping down.

It was last month that the company said the deal for GM to produce Nikola’s badger electric pickup truck wasn’t going to close and that the Badger was being cancelled.

Nikola’s descent began in September when a short-selling firm said the company never got its first truck, the Nikola One, working even though founder and executive chairman Trevor Milton had said the truck was fully functional.

The company had to admit that a promotional video of the truck “in motion” actually showed the truck rolling down a long hill. Milton resigned as executive chairman that same month.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.