Written by Cláudio Afonso | LinkedIn | X
Nikola shares hit a new all-time low on Monday, falling below $2 for the first time, after the electric truck maker announced a recall of 72 of its 2022-2023 battery electric (BEV) trucks due to a defect in the instrument cluster display.
In the third quarter earnings call, Nikola‘s management said it had redelivered 78 BEV trucks to dealers and fleet customers citing “overwhelmingly positive feedback” after a previous major recall that forced the company to fix all its trucks last year.
The CFO later added during the call that the company has another 81 units to be returned adding that the company had, as of the end of October, 150 BEV trucks in its inventory.
The company’s shares closed 13% lower on Monday at $2.02.
The issue causes the display to go black, either temporarily or permanently, preventing drivers from accessing critical information such as speed, range, and other essential operational metrics.
The company began investigating the issue in September 2024 after receiving six customer reports of display failures between June and September. By late October, Nikola’s internal teams recommended a recall, and the Vehicle Defects Committee approved the action on October 31. To date, no injuries or property damage have been linked to the issue.
The truck maker will now replace the affected instrument clusters with upgraded components. The company will cover all costs associated with the replacements.
Dealers were scheduled for informal notifications beginning November 8, with formal communications to follow. Customers are set to be notified by mail between November 22 and December 6.
Last week, the company announced amendments to its financing structure in a new U.S. Securities and Exchange Commission (SEC).
The changes, detailed in Nikola’s Fourth Supplemental Indenture and First Supplemental Indenture filings, allow holders of the June 2022 and June 2023 convertible notes to convert their debt at a discounted rate of $3.116 per share, contingent on the company raising at least $65 million in gross proceeds from stock sales.
During the last earnings conference call held on October 31, the company announced that its net revenue was negatively impacted by $7.7 million as it repurchased 20 BEV trucks from one of its dealers.
Nikola said last week it has produced its 300th hydrogen-powered truck at its Coolidge, Arizona, manufacturing plant. In the first three quarters of the year, the EV maker sold 200 hydrogen fuel cell trucks.
On the last day of October, amid the release of the third quarter financial results, the EV startup reaffirmed its volume guidance of 300-350 hydrogen powered trucks by year-end indicating that it expects to produce between 100 and 150 vehicles this quarter.
Written by Cláudio Afonso | LinkedIn | X
