On Wednesday, Nikola Corporation (NKLA), an automaker developing zero-emission semi-trucks, announced the termination of its contract with Republic Services (RSG) which operates in Waste Management.
Nikola had said it would be building 2,500 garbage trucks by 2023 with on-road testing in 2024. Investors had welcomed the deal back in August when shares of NKLA surged by 22%. The termination of the deal is a mutual decision and shares of NKLA plunged almost 10% at the announcement.
Nikola was one of the most successful SPACs of the year, rallying more than 800% and reaching an all-time high of 93.99 in June.
However, in the last few months, the company has been in turmoil as the founder and CEO, Trevor Milton stepped down after an SEC investigation. Then, General Motors (GM) backed out of a $2 billion stock deal. Nikola is steadily losing the investors’ hope and falling from grace.