Nikola (NKLA) shares suffered a significant drop in pre-market trading on Monday after the company halted sales and issued a recall of all trucks it has delivered this year. This decision came as a result of an investigation into recent battery fires. Nikola stated that a probe into a “minor thermal incident” in a parked truck’s battery pack revealed a specific component as the likely cause of a fire that occurred in June. In response, the company will recall approximately 209 trucks currently in the market and suspend all sales of new battery electric vehicles as it files a voluntary recall with the National Highway Traffic Safety Administration.
Nikola’s new CEO, Steve Girsky, emphasized the company’s commitment to safety, stating that they will continue to provide updates transparently as more information becomes available. The announcement led to a 13.85% drop in Nikola shares in pre-market trading, indicating an opening price of $1.68 each. Furthermore, this recall and sales suspension may jeopardize a recent truck order from transportation group J.B. Hunt, as Nikola had unveiled plans for J.B. Hunt Transport to purchase thirteen of its Class 8 zero-emissions trucks just last month.
Hashtags: #Nikola #NKLA #recalls #EVsafety #batteryfires #voluntaryrecall
Keywords: Nikola, NKLA, shares, pre-market trading, sales halt, trucks, battery fires, investigation, recall, safety, CEO, Steve Girsky, transparency, J.B. Hunt, transportation group, EVs, zero-emissions, truck order.
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