Nikola HFCEV semi appears belly-up as manufacturing halt rumors swirl

Money-strapped hydrogen truck maker Nikola is dealing with robust occasions — and its most up-to-date spherical of layoffs has halted manufacturing of its controversial hydrogen gasoline cell semi vans as the corporate faces down chapter (once more).

Final week, we acquired a tip from somebody claiming to be a Nikola insider saying that the corporate was planning to halt manufacturing of its hydrogen gasoline cell-powered semi vans. That tip was adopted shortly by information that Nikola’s inventory had sunk to a 52-week low, and a proper NHTSA criticism claiming the gasoline cell shuts down unpredictably.

A TSB was issued by the truck maker that appeared to handle the problems outlined, and the idea was that the unconfirmed tip was associated to the TSB.

For the uninitiated, a TSB is a technical service bulletin. Not fairly a recall, a TSB is often issued for what the producer considers non-safety-related issues, and serves as a diagnostic instrument for mechanics within the area when confronted with recognized points and customary complaints.

Nikola’s TSB is included, beneath:

Now, nonetheless, evidently the manufacturing shutdown at Nikola could be one thing extra everlasting.

A salesman at a Nikola seller who requested not be named advised me he was instructed to not settle for buy orders on the hydrogen gasoline cell vans for the foreseeable future. Moreover, we reached out to Nikola final week with three comparatively easy questions. These being:

1. We acquired a tip from somebody claiming to be a Nikola worker saying that Nikola was going to halt manufacturing of the hydrogen vans. Is that true? Whether it is, is {that a} everlasting cease or a short lived situation to handle the NHTSA criticism/show recall?
2. Is the TSB talked about right here https://electrek.co/2024/12/06/hydrogen-early-adopter-faces-big-problems-amid-nikola-challenges/ associated to the breakdowns/are you assured that may enhance the scenario?
3. A minimum of one early Nikola buyer advised us they’d to purchase all new chargers as a result of their authentic charging resolution wouldn’t “wake” the vans. Is that resolved/what chargers work greatest with Nikola vans?
4. I even have a salesman at a Nikola seller saying he’s been advised to not take POs on the hydrogen vans till additional discover. Curious in case you have a touch upon that, additionally?

After just a few days of ready and asking for updates, we acquired the next non-response from Nikola’s comms group: At the moment, we’re unable to remark. I’ll let you already know if that modifications.

It doesn’t take days to say “no”

“Yeah, this takes a minute to confirm,” stated Fred Lambert, Electrek editor-in-chief, once we talked about this story. “In the event that they’re not responding, they gained’t, or they’re attempting to therapeutic massage the reality.”

I whole-heartedly agree with Fred. It might take a handful of seconds to say, “We’re nonetheless constructing vans, let me get again to you on the remainder,” however the refusal to remark, the delay, coupled with the corporate’s newest SEC submitting that included the miserable language (beneath), doesn’t do a lot to instill confidence in Nikola’s future prospects.

Additional, the doubt concerning our means to proceed as a going concern has and continues to adversely have an effect on our means to acquire new financing on cheap phrases or in any respect. If we can not increase extra capital once we want it, we might should considerably cut back our spending, delay, cut back or cancel some or all of our deliberate enterprise actions or operations, promote property, or considerably change our company construction, and we might not have ample assets to conduct our enterprise as deliberate or in any respect. For instance, in October and December 2024, we decreased our workforce in an effort to higher align our staffing with our present wants. Nonetheless, these reductions in drive might end in unintended penalties and prices, corresponding to lack of institutional information, decreased morale, an adversarial influence on our popularity and challenges in attracting new expertise in addition to retaining skilled workers sooner or later. If we can not increase ample capital when wanted, we could also be pressured to additional curtail or to discontinue our operations, which might materially and adversely have an effect on our monetary situation, outcomes of operations, enterprise, and prospects, and should end in a lack of your funding.

NIKOLA SEC FILINGS

What’s extra, Reddit person Patron_1969 (a profile that hyperlinks again to a Nikola employee) additionally appears to verify that the manufacturing shutdown is actual, purchase says that it’s as a result of firm’s newest spherical of layoffs and makes an attempt at cost-savings, fairly than the unpredictable failures of the hydrogen drivetrain featured within the NHTSA criticism.

With rumors swirling, official communications on lockdowns, and tipsters talking up on e-mail and social media shops, it’s robust to do something however assume the worst for Nikola.

It seems to be the top of a 4-year-long demise spiral for Nikola:

It’s honest to notice that Nikola’s issues usually are not essentially indicative of the broader BEV and FCEV truck market.

The corporate’s issues went past the difficulties of delivering a brand new expertise to a longtime trucking business.