Nikola Corporation rang the Nasdaq Closing Bell remotely from across the world.
Source: The Nasdaq
Nikola and Republic Services have terminated a partnership to jointly develop electric refuge trucks, sending shares of the embattled start-up down about 12% during pre-market trading Wednesday.
Nikola said the decision was made after 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.”
“This was the right decision for both companies given the resources and investments required,” Nikola CEO Mark Russell said in a statement. “We support and respect Republic Services’ commitment to achieving environmentally responsible, sustainable solutions for their customers.”
When the deal for thousands of trucks was originally announced in August, Nikola’s stock surged 22% to $44.81 a share. The shares are trading at about a third of that price now. As of 8:35 a.m. Wednesday, shares were down by about 12% in pre-market trading to $15.95.
Republic Services did not immediately respond for comment.