Nikola’s stock drops after order for 2,500 electric garbage trucks has been cancelled

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Shares of Nikola Corp slumped 3.2% in premarket trading Wednesday, after the electric vehicle maker said it has discontinued its collaboration with Republic Services Inc. on developing garbage trucks, leading to the cancellation of an order for 2,500 trucks. “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,” the companies said in a statement. “As a result, the program is being terminated resulting in the cancellation of the previously announced vehicle order.” On Aug. 10, Nikola’s stock soared 22.0% to $44.81, after the company said it secured an order to make at least 2,500 electric garbage trucks for Republic Services. Since then, Nikola’s stock has plunged 62.4% through Tuesday, Republic Services shares have gained 5.4% and the S&P 500 has advanced 9.7%.
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