Tesla Rival Nikola Recalls All Battery-Powered Electric Trucks In The Market After Scrutiny, Halts Sales

In response to a recent fire probe revealing the cause of fires, Elon Musk's Telsa Inc. (NASDAQ: TSLA) rival Nikola Corporation (NASDAQ:NKLA) has decided to halt sales and voluntarily recall 209 Class 8 battery-electric trucks.

What Happened: Internal investigations by Nikola’s safety and engineering teams have pointed to a specific component supplied by a third-party supplier as the likely source of the coolant leak. This discovery led to the company’s decision to recall all affected battery-electric trucks to prevent potential safety hazards.

Nikola has also urged immediate safety measures for the owners of its Tre battery electric trucks, like parking the trucks outside. 

See Also: Nikola Racks Up Over 200 Orders For Hydrogen Trucks: Can It Turn Fortunes Around?

Nikola’s decision came after a comprehensive investigation into a series of fires involving their battery-electric trucks. The investigation, carried out by a third party, identified a coolant leak within the battery packs as the root cause of the fires. 

The preliminary findings were further substantiated by a minor thermal incident on an engineering validation truck. Additionally, addressing concerns of intentional harm, the company has emphasized that external factors or foul play are unlikely contributors to the incidents.

“We stated from the beginning that as soon as our investigations were concluded we would provide an update, and we will continue our transparency as we learn more,” said Stephen Girsky, Nikola’s CEO.

Why It’s Important: This recall and sales halt mark a strategic shift for Nikola, which has been grappling with supply chain challenges and weaker demand. The company has decided to focus on hydrogen fuel cell trucks and will now manufacture battery electric trucks solely on demand, reported Reuters. 

Nikola’s financial stability has also been a subject of concern. The company’s repeated warnings about its ability to continue as a going concern highlight the seriousness of the situation. 

A Nikola spokesperson confirmed that the voluntary recall affects all of its battery-powered trucks in the marketplace between dealers and customers.

Read Next: Elon Musk Reacts As Tesla Competitor Nikola’s Shares Fall Massively After 4th CEO Steps Down: ‘Amazing’

Editor's note: This article has been updated to reflect a statement issued by a company spokesperson.

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