Recall of Battery-Powered Trucks After Fire Investigation
Nikola announced on Friday the recall of all battery-powered electric trucks delivered to date and a suspension of sales. An investigation into recent fires identified a coolant leak inside a battery pack as the root cause.
Details of the Recall and Affected Trucks
With 209 battery-powered electric trucks between dealers and customers, Nikola is recalling these vehicles and contacting all relevant parties. A company spokesperson provided this information to Reuters.
Preliminary Findings and Minor Thermal Incident
The preliminary findings of the probe were supported on Thursday by a "minor thermal incident" on a parked engineering-validation truck. The company assured that nobody was injured and that external factors or foul play were unlikely causes.
Previous Suspicions and Identification of the Problem
Initially suspecting foul play, Nikola began an investigation in June after fire incidents at its Phoenix headquarters. Internal probes later identified a single supplier component in the battery pack as the probable source of the coolant leak causing the fires.
Nikola's Business Strategy and Focus
Struggling with supply chain issues and weaker demand, Nikola shifted its strategy to make battery electric trucks only to order, concentrating on hydrogen fuel cell trucks.
Leadership Changes and Financial Concerns
On Aug. 4, Nikola appointed Chairman Stephen Girsky, a former General Motors executive, as its CEO, the fourth in four years. The company has expressed "substantial doubts" about continuing operations, awaiting additional capital, and has warned three times since February.
Safety Measures for Nikola's Tre Trucks
Nikola advised customers and dealers of its Tre battery-electric trucks on Friday to take immediate safety precautions, including the consideration of parking them outdoors.
Impact on Nikola's Share Prices
Following the announcement, Nikola's shares took a hit, falling as much as 5.6% after the market closed.
