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

Money-strapped hydrogen truck maker Nikola is dealing with robust instances — and its most up-to-date spherical of layoffs has halted manufacturing of its controversial hydrogen gas cell semi vehicles 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 gas cell-powered semi vehicles. That tip was adopted shortly by information that Nikola’s inventory had sunk to a 52-week low, and a proper NHTSA grievance claiming the gas 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 device for mechanics within the subject when confronted with recognized points and customary complaints.

Nikola’s TSB is included, beneath:

Now, nonetheless, plainly the manufacturing shutdown at Nikola is likely to be one thing extra everlasting.

A salesman at a Nikola vendor who requested not be named instructed me he was instructed to not settle for buy orders on the hydrogen gas cell vehicles 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 vehicles. Is that true? Whether it is, is {that a} everlasting cease or a brief challenge to handle the NHTSA grievance/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. At the least one early Nikola buyer instructed us they’d to purchase all new chargers as a result of their unique charging resolution wouldn’t “wake” the vehicles. Is that resolved/what chargers work greatest with Nikola vehicles?
4. I even have a salesman at a Nikola vendor saying he’s been instructed to not take POs on the hydrogen vehicles till additional discover. Curious you probably have a touch upon that, additionally?

After a number of days of ready and asking for updates, we acquired the next non-response from Nikola’s comms workforce: At the moment, we’re unable to remark. I’ll let you realize if that adjustments.

It doesn’t take days to say “no”

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

I whole-heartedly agree with Fred. It will take a handful of seconds to say, “We’re nonetheless constructing vehicles, 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 relating to our means to proceed as a going concern has and continues to adversely have an effect on our means to acquire new financing on affordable phrases or in any respect. If we can not elevate extra capital once we want it, we could must considerably scale 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 could not have enough assets to conduct our enterprise as deliberate or in any respect. For instance, in October and December 2024, we diminished our workforce with a view to higher align our staffing with our present wants. Nevertheless, these reductions in drive could lead to unintended penalties and prices, equivalent to lack of institutional information, decreased morale, an adversarial influence on our fame and challenges in attracting new expertise in addition to retaining skilled workers sooner or later. If we can not elevate enough 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 lead to 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 substantiate that the manufacturing shutdown is actual, purchase says that it’s because of the firm’s newest spherical of layoffs and makes an attempt at cost-savings, quite than the unpredictable failures of the hydrogen drivetrain featured within the NHTSA grievance.

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

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

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

The corporate’s issues went past the difficulties of delivering a brand new know-how to a longtime trucking trade.