But Nikola’s stock price plummeted 10% on Wednesday morning, after the deal was publicly canceled. Wedbush analysts gave Nikola a “poor performance” rating in response to the announcement, which the company said was a “punch in the stomach” for investors who were counting on the Republic Services deal as a watershed for the company. troubled startup.
“Given the wave of bad news for Nikola in recent months, that was not the news that investors wanted to see under his Christmas tree,” wrote Dan Ives, an analyst at Wedbush, in a note to investors on Wednesday morning. “The company still has a steep climb like Kilimanjaro to regain Street’s credibility towards 2021, with today’s news seen as yet another setback,” added the company.
Nikola said the two companies agreed to cancel the deal after determining that the combination of new technologies and design concepts to make electric trucks would take more time and cost more than originally planned.
“This was the right decision for both companies, given the necessary resources and investments,” said Nikola’s CEO Mark Russell in a written statement.
“We continue to believe that electrification is the future, said the waste management company.” We believe that the opportunity to learn and partner with Romeo will continue to provide additional opportunities that support our electrification strategy. “
Nikola also said on Wednesday that deliveries to the United States of its Tre battery electric semi-trucks will begin in 2021. The company plans to launch its first commercial hydrogen station next year. Production of its hydrogen fuel cell electric semi-trucks is scheduled to begin in 2023.