
According to a quarterly report from the National Highway Transportation Safety Administration (NHTSA), via business blog EV, cash-strapped Nikola Motors (NKLA) has repaired and returned to market 111 of the 209 examples of its battery-electric semi truck following an August 2023 recall due to a coolant leak inside the battery pack that posed a fire risk.
This is welcoming news given Nikola's current financial situation but questions remain as to why not all 209 units have been repaired.
[Related: Nikola rumored to file for bankruptcy, CEO to depart]
Dated January 31, 2025, the report indicates the Phoenix, Arizona-based company has not managed to keep pace with the recall, which stated that every unit sold required completely new battery packs.
Nikola unveiled its remedy, the BEV 2.0 semi, last May at the 2024 ACT Expo. However, the company just sold its battery production equipment assets to Mullen Automotive, a potential signal that it intends to exit the battery-electric semi market entirely. Nikola has yet to comment on the sale.
[Related: Struggling Nikola sells battery assets to Mullen Automotive]
The NHTSA report further shows that only four trucks trucks received new batteries and were redelivered between July and September 2024. Three more trucks were repaired between October and December. As of this writing, 98 trucks are still waiting for repairs to be completed.
NHTSA
It is possible many customers chose to return the trucks for refunds instead of opting for repairs. Nikola previously confirmed that every customer-owned truck was fixed and redelivered. In other words, the remaining unrepaired trucks could be returned examples, though Nikola has not confirmed this.
This was not the first time Nikola recalled its battery-electric semi. Last November, a different recall was issued for 2022-2023 models because of an instrument cluster issue.
Plummeting stock price
Meanwhile, Nikola's stock price continues to nosedive. At the closing bell on Monday, February 3, Nikola stock dropped 8.86% to $0.72 - its second consecutive daily loss.
"We currently estimate that our existing financial resources are only adequate to fund our forecasted operating costs and meet our obligations into, but not through, the first quarter of 2025," Nikola stated in an SEC filing at the time.
The company was worth $26 billion in 2020 when it went public through a special purpose acquisition company (SPAC) that raised over $700 million. Today, Nikola has a market cap of just over $67 million.
Company executives confirmed in an SEC filing in December 2024 that it lacks the funds to survive through the first business quarter of 2025, which could explain why Nikola decided to pursue the Mullen Automotive deal.
A bankruptcy filing has not been ruled out though it is typically considered a last resort. Finding a buyer for part or all of Nikola's assets is a more likely scenario.