What Next For Nikola After Fire-Riddled Recalls? BEV Truck Maker Outlines Strategy
Portfolio Pulse from Anan Ashraf
Nikola Corp (NASDAQ:NKLA) has outlined its strategy following a recall of all its battery electric trucks due to fire incidents caused by coolant leaks within the battery packs. The company plans to replace the battery packs in the existing BEVs with new packs from an alternative supplier. The upgraded vehicles, dubbed “2.0,” will feature improved battery packs, scheduled departure charging, enhanced human-machine interface (HMI), and Bluetooth functionality. They are set to be returned to customers starting in Q1 2024. Nikola anticipates increased costs over the next nine to 12 months related to the recall, leading to an additional capital requirement of approximately $400 million.
November 03, 2023 | 8:51 am
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Nikola Corp's recall of its battery electric trucks due to fire incidents and the subsequent strategy to replace the battery packs with new ones from an alternative supplier is likely to impact the company's financials and reputation. The recall is expected to cost an additional $400 million over the next nine to 12 months.
The recall of Nikola Corp's battery electric trucks due to fire incidents is a significant event that directly impacts the company's operations and financials. The company's strategy to replace the battery packs with new ones from an alternative supplier indicates a significant change in its product and could impact its reputation. The anticipated additional cost of $400 million over the next nine to 12 months due to the recall is a substantial financial burden that could negatively impact the company's stock price in the short term.
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