Nikola (NASDAQ:NKLA) dropped early Monday, after it announced a recall of 209 electric trucks following an independent investigation of a June fire. The company said this doesn’t impact its hydrogen fuel cell trucks.
Nikola is currently in the process of filing the voluntary recall with the National Highway Traffic Safety Administration and is placing a temporary hold on new BEV sales until a resolution is in place.
An investigation determined that coolant leak inside a single battery pack was found to be the probable cause of the truck fire at the company's headquarters in Phoenix, Arizona on June 23. The findings were further corroborated by a minor thermal incident that impacted one pack on an engineering validation truck parked at the company's Coolidge, Arizona plant on Aug. 10. No one was injured in either incident.
Internal investigations from Nikola's safety and engineering teams indicate a single supplier component within the battery pack as the likely source of the coolant leak and efforts are underway to provide a field remedy in the coming weeks. Thus far, only two battery packs have experienced a thermal event, out of more than 3,100 packs on trucks produced to date.
Notably, the recall actions do not affect the hydrogen fuel cell electric vehicle currently in production as the truck's battery pack has a different design.
NKLA shares docked 22 cents, or 11.7%, to $1.73.
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