Nikola CEO Terms Truck Fires A 'Setback', Says It Won't Affect Hydrogen-Powered Truck Deliveries
Portfolio Pulse from Anan Ashraf
Nikola Corp's CEO, Steve Girsky, has termed the recent fires in its battery electric trucks as a 'setback', but assured that it won't affect the deliveries of its hydrogen-powered trucks. The company issued a recall for all the vehicles in the market between dealers and customers in August, following several incidents of fire since June. The cause of the fires was identified as a coolant leak within the battery packs. Nikola has halted deliveries of its battery electric vehicles until the recall is complete, but is preparing to deliver its hydrogen fuel cell trucks, which use different battery packs from a different supplier.
September 14, 2023 | 5:20 am
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Nikola Corp's recent truck fires and subsequent recall could negatively impact investor confidence in the short term. However, the company's assurance that this will not affect the deliveries of its hydrogen-powered trucks could mitigate some of this impact.
The news of the truck fires and the subsequent recall could lead to a decrease in investor confidence, potentially leading to a short-term drop in the stock price. However, the company's assurance that this will not affect the deliveries of its hydrogen-powered trucks, which are a significant part of its business, could help to mitigate some of this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100