On Friday evening, Nikola, the American manufacturer of electric trucks, announced that they would recall all the battery-powered trucks that they have delivered per today’s date.
According to the Reuters news agency, there are supposed to be 206 battery-powered trucks that are on the market both with dealers and customers.
The recall comes as a result of an investigation into recent fires, where they found a coolant leak inside a battery pack on the trucks, which is said to have been the cause of the fires.
This also causes the American truck manufacturer to suspend sales until further notice.
So far, no injuries have been reported as a result of the defect, and Nikola has asked customers and dealers to take immediate safety measures, including parking the car outdoors.
Nikola fell more than 5 percent in after-hours trading on Wall Street on Friday evening.
New boss
Last week it became known that Michael Lohscheller resigned as CEO so that he can go to Europe to be with his family.
Lohscheller will be replaced by Stephen Girsky, a former top executive at General Motors who has until now been chairman of the company’s board. Girsky will retain a board seat, but will relinquish the chairman role as he moves to lead the day-to-day operations of the electric truck maker.
Just like his predecessor Mark Russell, Lohscheller sat in the chief’s chair for less than 18 months, which means that Girsky will be the company’s fourth chief in four years.
Doubts about the operation
At the same time as the company announced a new CEO, they also repeated the doubts about continued operations for the third time since February.
According to the company, there is still “substantial doubt” about the company’s ability to continue as a going concern for the next 12 months, as the truck manufacturer waits for the necessary additional capital. At the end of the second quarter, the company had cash and cash equivalents of 226.7 million dollars – down from 441.8 million dollars in the same period the previous year, writes Reuters.
This happened the day after shareholders in the electric truck maker had approved a plan to issue more shares to raise more cash, although concerns about dilution have also been raised. A meeting that has been postponed twice so that the company would have enough time to build up support for the share issue among investors.
2023-08-12 08:20:20
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