Nikola 2025 Stock Drops Nearly 10% Following Recall of 209 Electric Semi-Trucks Due to Battery Fire Risks
Nikola Corporation has initiated a voluntary recall of 209 Class 8 Tre electric semi-trucks amid concerns over potential battery fires, causing a significant stock decline.
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Essential Highlights
- Nikola Corp. recalls 209 Class 8 Tre electric semi-trucks due to possible battery malfunctions that could lead to fires.
- Following the recall announcement, Nikola's stock plunged nearly 10% during early trading on Monday.
- Investigations revealed a coolant leak inside the battery pack as the likely cause of two separate battery incidents.
- The recall does not impact Nikola's hydrogen fuel cell trucks currently in production, which have a different battery design.
Nikola Corporation (NKLA) experienced a sharp decline of more than 9% in early Monday trading after voluntarily recalling 209 of its Class 8 Tre electric semi-trucks due to potential battery fire hazards. The company has also paused sales of new battery electric vehicles (BEVs) until the issue is resolved.
Internal and third-party investigations identified a coolant leak inside the battery pack as the probable cause of a fire on June 23 at Nikola's Phoenix headquarters. A similar minor thermal event occurred on August 10 in an engineering validation truck at the Coolidge, Arizona facility. Fortunately, no injuries were reported in either incident.
Nikola attributed the leak to a single supplier component within the battery pack and announced ongoing efforts to develop a field remedy expected in the coming weeks. Meanwhile, BEV truck owners and dealers are advised to assist in vehicle monitoring.
The company's hydrogen fuel cell electric vehicles remain unaffected by the recall due to their distinct battery pack design.
Following the recall announcement, Nikola shares dropped to their lowest point in over a month, reflecting market concerns.
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