BNR – In another setback, an electric semi-truck from Nikola caught fire near its Phoenix headquarters in Arizona. This fire marks the second of such incidents within a week.
Following this alarming development, Nikola’s shares plummeted by approximately 15%, reaching a valuation of just $0.88 per share.
Furthermore, this significant decline has brought the company’s shares down by nearly 55% since August.
At the time, Nikola initiated a recall of all battery-powered electric trucks it had previously delivered.
Sales of these vehicles were also paused as a precautionary measure after an investigation into earlier fire incidents.
Earlier this week, yet another of the company’s Tre battery-electric trucks caught fire in Tempe, Arizona. Luckily, no one was injured in any of the two fire incidents.
Nikola Recall and Investigation Continue
The latest vehicle involved in the fire was a pre-production unit. The battery pack of this unit was being tested in a fire investigation and tests.
The company had initially suspected foul play when it began its investigation in June following a series of truck fires at its headquarters.
However, last month, Nikola determined that a coolant leak within a battery pack was the primary cause of these fires.
At the recall time, a total of 209 battery-powered electric trucks were in circulation, either with dealers or customers. This further added to the concerns surrounding Nikola’s vehicle safety and reliability.