In a recent incident near Nikola Corporation’s Phoenix headquarters in Arizona, a Nikola electric semi-truck caught fire, marking the second such occurrence within a week. This latest mishap has sent shockwaves through the company, causing its shares to plummet by approximately 15% to 88 cents.
This development adds to the woes of the electric vehicle manufacturer, which has already seen a nearly 55% drop in its stock value since August. The decline began when Nikola initiated a recall of all battery-powered electric trucks and halted sales due to an investigation into previous fire-related incidents.
Earlier this week, another Nikola vehicle, the Tre battery-electric truck, caught fire in Tempe, Arizona, albeit with minimal damage, affecting only one battery pack. Fortunately, no injuries were reported in either of these incidents.
The truck involved in the most recent fire was a pre-production unit, which was in the midst of undergoing battery fire investigation and testing, according to a statement from the company. Nikola had initially suspected foul play when fires occurred at its headquarters in June. However, after an investigation, the company attributed the incidents to a coolant leak inside a battery pack.
At the time of the recall announcement, a total of 209 battery-powered electric trucks were in circulation between dealers and customers. Nikola’s efforts to address these safety concerns will likely be closely monitored by both investors and regulators as it strives to regain market confidence.
