Nikola is conducting a recall of all its battery-electric Tres due to a flaw in their battery packs that poses a fire hazard. This decision comes after a fire incident at Nikola’s headquarters in June 2023, where five battery-electric Tres were destroyed. The company is taking proactive measures to address the issue and ensure customer safety.
Following this announcement, shares of Nikola experienced a sharp decline. The stock price fell by over 6% on Monday, reaching $1.82 per share. However, it’s important to note that this recall only impacts the battery-electric semitrucks and not the recently launched hydrogen fuel cell trucks.
The recall was prompted by a third-party investigation that revealed a coolant leak within the battery pack as the probable cause of the fire incident in June. Initially, Nikola suspected vandalism as the cause but now believes that external factors were unlikely to be responsible. Another battery pack malfunction was identified in a truck used by the engineering team in August, although it was caught before escalating into a major fire.
Nikola’s engineers have identified a component in the battery pack, supplied by an external manufacturer, as the likely culprit. The company is working on developing a repair solution and will halt sales of the battery-electric trucks until the issue is resolved. In the meantime, Nikola is actively monitoring its entire fleet for any signs of similar defects. While the company believes the risk is low, it advises operators to park the trucks outside as a precautionary measure until the repair is available.
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