Why Shares of Nikola Are Falling Today
Shares of Nikola (NASDAQ: NKLA) fell 10% on Wednesday morning after the electric truck start-up lost a massive order from waste collection company Republic Services (NYSE: RSG). The growth story investors eagerly bought into earlier in the year continues to crumble, and Nikola shares are falling as a result.
Nikola was flying high in August when it announced a deal with Republic Services to develop and manufacture 2,500 waste and recycling collection trucks, breaking into a huge potential market for EVs.
But a lot has changed since then. Nikola was hit by an attack by a short-seller accusing the company of overhyping its products and technologies in investor demonstrations. Founder and former executive chairman Trevor Milton left the company under a dark cloud, and a deal struck with General Motors to source much-needed technologies was downsized.
Source Fool.com
