Nikola recalls all battery-electric trucks, halts sales after fire probe By Reuters

© Reuters. FILE PHOTO: Emblem of U.S. truckmaker Nikola is pictured on the IAA Transportation honest in Hanover, Germany, September 19, 2022. REUTERS/Fabian Bimmer/File Photograph

By Mrinmay Dey

(Reuters) -Nikola mentioned on Friday it was recalling all of the battery-powered electrical vehicles that it has delivered until date and is suspending gross sales after an investigation into latest fires discovered a coolant leak inside a battery pack because the trigger.

There are a complete of 209 battery-powered electrical vehicles within the market between sellers and prospects and the corporate is recalling these autos and is within the means of contacting all events, a spokesperson for Nikola informed Reuters.

The preliminary findings of the probe by a third-party investigator had been corroborated on Thursday by a “minor thermal incident” on one pack on a parked engineering-validation truck, the corporate mentioned, including that nobody was injured.

“Foul play or different exterior components had been unlikely to have triggered the incident,” Nikola mentioned in a press release, including efforts had been underway to offer a treatment.

The corporate had mentioned it suspected foul play when it began an investigation in June after vehicles at its Phoenix, Arizona, headquarters caught hearth. One broken truck, saved on the Phoenix website for monitoring, re-ignited final month.

Inside investigations from Nikola’s security and engineering groups point out a single provider part throughout the battery pack because the possible supply of the coolant leak that triggered the autos to catch hearth, the corporate mentioned.

Combating provide chain bottlenecks and weaker demand, Nikola determined to make battery electrical vehicles solely to order and deal with hydrogen gasoline cell vehicles.

Nikola on Aug. 4 appointed Chairman Stephen Girsky, a former Basic Motors (NYSE:) govt, as its chief govt, its fourth in 4 years.

The corporate flagged “substantial doubts” about its potential to proceed as a going concern for the subsequent 12 months, reiterating its warning for the third time since February, because it awaits “vital” extra capital.

On Friday, Nikola requested prospects and sellers of its Tre battery electrical vehicles to take sure quick security measures, together with contemplating parking them exterior.

Nikola’s shares fell as a lot as 5.6% after the shut.