BNR – Nikola stated in a tweet that a blaze at the firm’s Phoenix, Arizona headquarters had destroyed a number of its vehicles. Nikola is a startup that manufactures electric and hydrogen-powered semi-trucks.
“Foul play is suspected as a vehicle was seen in the area of the affected trucks prior to the incident.” the tweet said, “an investigation is underway.”
According to CNN, a Nikola spokesman said that additional details will be shared when they are available.
Challenges in Extinguishing the Fire
Phoenix Fire Department captain Todd Keller said the initial report of a fire came in at 4:30 a.m. Firefighters were still hosing the five vehicles at 8:00 a.m. in Phoenix.
They were attempting to reduce the battery packs’ temperature sufficiently to allow them to be moved into big containers. The batteries will be covered with sand or immersed in water within those containers.
Fires caused by electric car batteries may be difficult to put out. Because of the high quantity of energy contained in the batteries, extinguished flames could ignite later through chemical processes.
The trucks were among over 30 kept at the headquarters. Keller couldn’t say whether arson was involved until the fire department finished its probe. The probe might last many days or weeks.
Nikola Stock Price Plummets
By late afternoon on Friday, Nikola’s stock price had fallen by almost 8 per cent.
The company’s leadership is presently pursuing approval from shareholders for a reverse stock split. The split is intended to raise the firm’s stock price, which is now about $1.30 per share. The firm has also announced significant cost cuts.
Hindenburg Research published a damning assessment of Nikola in 2020. Hindenburg Research is an investment fund that investigates firms, shorts their shares, and then releases reports citing flaws. According to the investigation, the corporation inflated the progress of prototypes and the worth of several commercial relationships. Nikola stated at the time that the allegations were untrue.
