Nikola and Republic Services have terminated a partnership to collectively develop electrical refuge trucks, sending shares of the embattled start-up down about 12% throughout pre-market buying and selling Wednesday.
Nikola stated the choice was made after each corporations "determined that the combination of the various new technologies and design concepts would result in longer than expected development time, and unexpected costs."
"This was the right decision for both companies given the resources and investments required," Nikola CEO Mark Russell stated in a press release. "We support and respect Republic Services' commitment to achieving environmentally responsible, sustainable solutions for their customers."
When the deal for 1000’s of trucks was initially introduced in August, Nikola's inventory surged 22% to $44.81 a share. The shares are buying and selling at a few third of that value now. As of 8:35 a.m. Wednesday, shares have been down by about 12% in pre-market buying and selling to $15.95.
Republic Services didn’t instantly reply for remark.
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