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Nikola (NKLA) Recalls Tre BEV Trucks Over Battery Safety Issue
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Nikola Corporation (NKLA - Free Report) has issued a recall for its Tre BEV Trucks and halted sales after discovering the cause of a recent fire. Exponent, a third-party investigator, published preliminary findings on the truck fire that happened in Nikola’s headquarters in Phoenix, AZ this June.
Per Exponent’s findings, a coolant leak inside a battery pack was the possible cause of the fire. Nikola said that a minor thermal incident on one pack on a parked engineering-validation truck at the company’s facility in Coolidge, AZ on Aug 10 corroborates the findings. Nikola also retracted its earlier statement in which it suspected foul play or other external factors to be the cause of the incident.
The electric vehicle (EV) manufacturer is currently filing the voluntary recall with the National Highway Traffic Safety Administration and has halted sales until a resolution is in place.
Per Nikola's safety and engineering teams, a single supplier component within the battery pack is the likely source of the coolant leak that caused the vehicles to catch fire.
Nikola says that the affected vehicles can still be used and has recommended certain actions that need to be followed immediately by all customers and dealers. They need to place the Main Battery Disconnect switch into the “ON” position at all times to enable real-time vehicle monitoring and safety systems operation. Also, parking trucks outside will allow over-the-air updates and better connectivity with Fleet Command, Nikola’s truck monitoring system.
Nikola’s hydrogen fuel-cell trucks, which are in the manufacturing stage and are scheduled for delivery in the third quarter, are unaffected by the issue.
The company says that it is using software systems in real-time to monitor trucks in the field and so far, just two battery packs out of more than 3,100 packs on trucks have experienced a thermal event, representing less than 0.07% of total trucks.
Moreover, the EV manufacturer cast doubts on its ability to continue as a going concern for the next 12 months as it awaits critical additional capital.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 13.5% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimate for 2023 has increased by 97 cents in the past 30 days. The 2024 EPS estimate has moved up by $1.64 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies year-over-year growth of 9.5% and 24.1%, respectively. The EPS estimate for 2023 has moved up by 22 cents in the past 30 days. The 2024 EPS estimate has moved north by 28 cents in the past 30 days.
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Nikola (NKLA) Recalls Tre BEV Trucks Over Battery Safety Issue
Nikola Corporation (NKLA - Free Report) has issued a recall for its Tre BEV Trucks and halted sales after discovering the cause of a recent fire. Exponent, a third-party investigator, published preliminary findings on the truck fire that happened in Nikola’s headquarters in Phoenix, AZ this June.
Per Exponent’s findings, a coolant leak inside a battery pack was the possible cause of the fire. Nikola said that a minor thermal incident on one pack on a parked engineering-validation truck at the company’s facility in Coolidge, AZ on Aug 10 corroborates the findings. Nikola also retracted its earlier statement in which it suspected foul play or other external factors to be the cause of the incident.
The electric vehicle (EV) manufacturer is currently filing the voluntary recall with the National Highway Traffic Safety Administration and has halted sales until a resolution is in place.
Per Nikola's safety and engineering teams, a single supplier component within the battery pack is the likely source of the coolant leak that caused the vehicles to catch fire.
Nikola says that the affected vehicles can still be used and has recommended certain actions that need to be followed immediately by all customers and dealers. They need to place the Main Battery Disconnect switch into the “ON” position at all times to enable real-time vehicle monitoring and safety systems operation. Also, parking trucks outside will allow over-the-air updates and better connectivity with Fleet Command, Nikola’s truck monitoring system.
Nikola’s hydrogen fuel-cell trucks, which are in the manufacturing stage and are scheduled for delivery in the third quarter, are unaffected by the issue.
The company says that it is using software systems in real-time to monitor trucks in the field and so far, just two battery packs out of more than 3,100 packs on trucks have experienced a thermal event, representing less than 0.07% of total trucks.
Moreover, the EV manufacturer cast doubts on its ability to continue as a going concern for the next 12 months as it awaits critical additional capital.
Zacks Rank & Other Key Picks
NKLA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 13.5% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimate for 2023 has increased by 97 cents in the past 30 days. The 2024 EPS estimate has moved up by $1.64 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies year-over-year growth of 9.5% and 24.1%, respectively. The EPS estimate for 2023 has moved up by 22 cents in the past 30 days. The 2024 EPS estimate has moved north by 28 cents in the past 30 days.