Nikola shares are moving lower after the company announced that its collaboration on refuse truck development with Republic Services (RSG) has been discontinued. The “goal of the collaboration was to design and build an industry-first fully integrated refuse truck based on a zero-emissions battery-electric drive platform and body while also integrating multiple new systems into a new state-of-the-art vehicle,” Nikola said in a statement.
However, both companies determined that the combination of the various new technologies and design concepts “would result in longer than expected development time, and unexpected costs.” As a result, the program is being terminated resulting in the cancellation of the previously announced vehicle order. “This was the right decision for both companies given the resources and investments required,” said Nikola CEO Mark Russell. Shares of Nikola are down 10%, or $1.68, to $15.15 in premarket trading.
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