Nikola and Republic Services end collaboration on electric refuse truck; 2,500-unit order cancelled
25 December 2020
Nikola Corporation and Republic Services have discontinued their collaboration on refuse truck development (earlier post). 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 had announced a minimum order of 2,500 trucks, expandable up to 5,000.
After considerable collaboration and review, 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.
Nikola stock has dropped from $16.43 a share prior to the announcement to $13.75 per share prior to the Christmas break. Its high was $79.73 per share in June 2020; post the restructuring of its earlier deal with GM, the stock was down to around $20 by the end of November.
YTD share price of Nikola
Nikola has laid out a roadmap that begins deliveries of Nikola Tre battery-electric semi-trucks in the US in 2021. Nikola is also planning to break ground on its first commercial hydrogen station in 2021. The company’s fuel-cell-electric semi-trucks will be produced at Nikola’s Coolidge, Arizona facility beginning in 2023.