Nikola announced on Friday that it is recalling all the battery-powered electric trucks it has delivered and suspending sales. This decision comes after an investigation into recent fires revealed a coolant leak inside a battery pack as the cause. The company is currently in the process of contacting all parties involved, including dealers and customers, as there are a total of 209 affected vehicles in the marketplace.
The preliminary findings of the investigation were confirmed by a “minor thermal incident” on one pack of a parked engineering-validation truck. Nikola stated that no one was injured in this incident and that foul play or external factors were unlikely to be the cause. The company is now working on providing a remedy for the issue.
The investigation was initiated in June after trucks at Nikola’s Phoenix headquarters caught fire. The company suspected foul play at the time. Last month, one damaged truck at the Phoenix site reignited, further raising concerns. Internal investigations conducted by Nikola’s safety and engineering teams have identified a single supplier component within the battery pack as the likely source of the coolant leak that led to the fires.
Due to supply chain challenges and weaker demand, Nikola has decided to focus on hydrogen fuel cell trucks and will only produce battery electric trucks on order. In addition, the company recently appointed Stephen Girsky, a former General Motors executive, as its chief executive. This marks the fourth CEO change in four years for Nikola.
Nikola has expressed “substantial doubts” about its ability to continue as a going concern for the next 12 months and has reiterated its warning for the third time since February. The company is awaiting additional capital, which it considers critical for its operations.
As a safety precaution, Nikola has asked customers and dealers of its Tre battery electric trucks to take immediate measures, including parking the vehicles outside. Following this announcement, Nikola’s shares fell by as much as 5.6%.
In conclusion, Nikola is recalling all delivered battery-powered electric trucks and suspending sales due to a coolant leak issue that has caused fires. The company is actively working on a solution and has asked customers and dealers to take safety measures. Nikola’s future is uncertain as it faces supply chain challenges and seeks additional capital.
