Nikola continues to struggle with its electric trucks. New fires have occurred, and the value of…
Nikola continues to struggle with its electric trucks. New fires occurred, and the company’s value suffered.
Last month, Nikola orchestrated a recall of all its electric trucks for a fire risk. A drastic measure which gained further relevance last week. Two new fires broke out on the brand’s heavy goods vehicles.
The manufacturer initially mentioned a ” mistake “ which would have been committed while handling a prototype. However, Nikola employees told Electrek that there might be a problem with the battery cells.
Romeo, a company that Nikola bought last year, supplies the batteries for the truck. During the massive recall, Nikola mentioned a coolant leak. But at the time, there were only two fires, plus two other problems.
At the beginning of last week, a first fire broke out at the Arizona Lithium plant. Finally, on Friday, another truck caught fire at Nikola HQ, according to Electrek. After the American publication contacted the manufacturer, the latter posted a statement online on the subject.
“On Friday, September 8 at approximately 8:30 a.m., a thermal incident occurred with a technical validation battery-electric truck near Nikola’s headquarters in Phoenix. No one was hurt “said the manufacturer in a press release.
“This pre-production truck was outside undergoing a battery fire test. We thank Phoenix first responders for their quick action. We will share more information as soon as we know more. »
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The stock continues to fall on the stock market
The accumulation of problems for Nikola obviously affects the company’s valuation. This inexorably continues its fall, and the stock falls below a dollar in value.
When it launched in early 2020, the stock was worth $10, before a breakthrough mid-year. By mid-June 2020, the stock had approached $90, pushing Nikola’s valuation to $30 billion.
The bubble then burst with a drop to $24 a month later, then to $19 in September 2020. Since then, Nikola’s broken promises and the cancellation of its electric pickup have accelerated the fall. Today, Nikola’s stock is worth $0.88 on the stock market, for a total value of $753 million.
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