Nikola (NKLA) -) shares plunged lower in pre-market trading Monday after halting sales, and recalling all of the trucks its delivered so far this year, following an investigation into recent battery fires.
Nikola said late Friday that a probe into what it called a "minor thermal incident" in a battery pack of a parked truck found a specific component as the likely cause of the first, which took place in June.
Nikola will recall around 209 trucks already in the market, while suspending all new battery electric vehicle sales, as it files the voluntary recall with the National Highway Traffic Safety Administration.
“At Nikola we take safety very seriously,” said new CEO Steve Girsky. “We stated from the beginning that as soon as our investigations were concluded we would provide an update, and we will continue our transparency as we learn more.”
Nikola shares were marked 9% lower in early Monday trading to change hands at $1.78 each.
The recall and sale suspension may also put a new truck order with transport group J.B. Hunt JBHT, which was unveiled late last month, in doubt.
Nikola said on July 31 that J.B. Hunt Transport, a subsidiary of the transport and logistics group, will buy thirteen of its Class 8 zer0-emissions trucks, including ten battery electric vehicles and three hydrogen fuel cell electric vehicles.
Tesla (TSLA) -) is also planning to spend around $3.6 billion to expand its Nevada gigafactory as it looks to ramp-up production of its long-awaited semi, a director competitor to Nikola's TRE.
The Tesla semi, which will be powered by a 4680 battery cell, was initially expected in 2019. Musk hopes to produce around 50,000 a year by 2024.
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