Shares of Nikola Corp fell in early trade after the manufacturer announced it would recall the trucks and pause sales after several battery fires.
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The company will call back approximately 209 of its Tre trucks after a third-party investigator found that a coolant leak was likely behind a fire at the company’s Phoenix headquarters in June. While Nikola said her vehicles can remain in operation, she has advised customers and dealers to park outside until a repair is ready in the coming weeks.
Nikola stock fell 17% before the start of regular trading on Monday. Shares are down 98% from their peak in June 2020, the month Nikola went public by merging with a special purpose acquisition company.
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Internal investigations by Nikola’s safety and engineering teams indicate that a single supplier component within its battery packs is the likely source of coolant leaks that a third party found to be the likely cause of the truck fire in June.
The company said this was confirmed by a “minor thermal incident” last week involving an engineering verification truck in Arizona. No one was injured in either case.
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