Written by Cláudio Afonso | LinkedIn | X
EV maker Nikola has updated its quarterly recall report filed with the National Highway Traffic Safety Administration (NHTSA), now reporting cumulative figures after discrepancies with prior filings raised concerns over compliance with federal recall reporting rules.
As reported by EV earlier this month, Nikola’s recall report with the NHTSA did not align with the requirements from the U.S. Safety Administration.
In its new submission dated February 7, the Phoenix-based startup disclosed that it had repaired 111 of the 209 battery-electric trucks recalled in August 2023 due to a coolant leak that posed a fire risk.
In the previous report, filed on the last day of January, the company only listed quarterly fixes rather than an aggregated total, contradicting federal regulations requiring cumulative reporting.
Regulatory Compliance
NHTSA regulations (49 CFR § 573.7) mandate that automakers provide cumulative totals for recall remedies rather than period-specific figures. Nikola’s earlier reports did not comply with this requirement, listing only trucks repaired per quarter.
Nikola had stated on social media on February 4 that “111 recalled BEVs have been returned to the market,” though its initial Q4 2024 report only reflected 40 repairs. The latest filing now aligns with this claim.
A review of previous filings shows that by the end of Q3 2024, Nikola had reported fixing 37 vehicles, suggesting a discrepancy in its reporting methodology. The latest update clarifies that the 111 figure reflects all trucks repaired since the recall’s initiation in the second half of 2023.
Slow Recall Progress
Nikola has now remedied approximately 53% of the recalled trucks, leaving nearly 98 vehicles still requiring fixes. The company has faced difficulties securing funds to sustain operations, which has slowed the recall process.
In an October 2024 earnings call, Nikola CFO Tom Okray stated the company had “returned 78 trucks,” but at the time, only 37 were officially reported as repaired under NHTSA filings. Okray also noted that 81 trucks remained pending repairs, while nearly 150 units were in Nikola’s inventory and not part of the recall.
The latest NHTSA filing also includes a new category—“Total Unreachable”—which now lists 11 vehicles, indicating that some recalled units may no longer be recoverable for remediation.
This means the “Total Remedied” figures in these reports should reflect the aggregate number of vehicles fixed to date rather than just those repaired in a given quarter.
In October, during the company’s third quarter conference call, Nikola’s CFO Tom Okray stated, “In terms of the actual recall, we’ve returned 78 trucks as the prepared remarks said.”
“And we’ve got another 81 trucks in the recall that are pending. In addition to that, we’ve got almost 150, which is in Nikola’s inventory and not part of the recall,” the executive added.
Stock Performance
Nikola shares surged 41% on Tuesday and extended gains by 6% in Wednesday’s premarket trading, pushing the stock to $0.81 before trading was halted.
Financial Struggles
Nikola has been exploring strategic options, including a potential sale, partnerships, or raising additional capital. The stock was halted on Wednesday’s pre-market session due to news pending.
Last October, the company’s chief financial officer Tom Okray stated that the company had a cash runway of “five to six months,” with a monthly burn rate of $30 million to $40 million.
