It’s been a rough year for Nikola Motors, and somehow, a new announcement has revealed that the company’s year from hell is not over.
Nikola Motors has announced that it will no longer pursue its previously-announced partnership with refuse company Republic Services, according to a press release Wednesday. In the release, Nikola shares that both companies agreed that the new design would come with unexpected development times and costs.
Nikola CEO Mark Russell said, “This was the right decision for both companies given the resources and investments required.” Russell continued, “We support and respect Republic Services’ commitment to achieving environmentally responsible, sustainable solutions for their customers. Nikola remains laser-focused on delivering on our battery-electric and fuel-cell electric commercial truck programs, and the energy infrastructure to support them.”
Colliers Securities analyst Michael Shlisky said today he believes
The end of the Republic truck deal for Nikola $NKLA "should allow the company to focus on its core business"
— Evan (@StockMKTNewz) December 24, 2020
With recent announcements that it would be abandoning the highly-anticipated Badger pickup truck design, Nikola is down to just the Nikola Tre, which is now set for delivery in 2021. Additionally, the press release says the company plans to begin building its first commercial hydrogen station in 2021.
Nikola’s hydrogen fuel cell technology is allegedly ground-breaking, though the company was in hot water earlier this year for fraudulently flaunting its capabilities with the Nikola Tre. Investors still haven’t seen anything concrete about a real-life production vehicle.
While the refuse sector is no longer within reach for Nikola, it will still have a shot at mass-producing its semi-trucks, the Nikola Tre. If it can avoid throwing away the rest of its operations for just another year, the company may have a shot at surviving. Share of Nikola have dipped since the announcement, trading at $14.22 per share.
