Nikola recalls 209 electric trucks, stops sales due to fire investigation.

Recall and Sales‌ Suspension: Nikola’s Electric Trucks

Electric-truck maker ⁤Nikola has announced a recall of approximately 209 battery-powered electric trucks and has temporarily suspended sales. This decision comes after an‌ investigation into recent fires revealed a coolant leak ‌inside a⁢ battery ⁣pack as the cause.

The preliminary findings of the⁣ probe, conducted by ​a third-party investigator, were confirmed on Thursday when​ a “minor thermal incident” occurred on one pack of a parked engineering-validation truck. Fortunately, no⁣ injuries were reported.

“Foul play or other external factors were unlikely to have caused the incident,” stated Nikola in a press release, emphasizing that efforts are underway to find a solution.

The company⁢ initially suspected foul play when it launched an investigation in June after trucks at its Phoenix,‌ Arizona, headquarters​ caught fire. Last month, a damaged truck kept at the Phoenix site for monitoring reignited.

Internal investigations conducted by Nikola’s safety and engineering⁤ teams have⁤ identified a single supplier component within the battery pack as the probable ‍source of the coolant⁢ leak that led to ⁢the‍ vehicle fires.

Dealing with supply⁢ chain challenges⁣ and weaker demand, Nikola has decided to‌ focus ⁤solely on hydrogen fuel cell trucks and will produce battery electric trucks only upon⁣ order.

On August 4,⁢ Nikola appointed Chairman Stephen Girsky, a former General Motors executive, as⁤ its chief executive, marking the ‌fourth change in leadership within four years.

The company‍ has expressed “substantial doubts” about its⁢ ability to continue as a going‌ concern for ​the next 12 months, reiterating its warning for the third time since February, as it awaits crucial additional capital.

As a precautionary measure, Nikola has requested customers and dealers of its Tre battery electric trucks to take⁤ immediate safety measures, including considering parking them outside.

Following the announcement, Nikola’s shares‌ fell by as much as 5.6% after the market closed.

(Reporting by Shubhendu Deshmukh and Mrinmay Dey in Bengaluru and⁤ Abhirup⁤ Roy in San Francisco; Editing by Sandra Maler and William Mallard)

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