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

Money-strapped hydrogen truck maker Nikola is going through robust instances — 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 rapidly 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 deal with the problems outlined, and the belief 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 usually issued for what the producer considers non-safety-related issues, and serves as a diagnostic instrument for mechanics within the subject when confronted with recognized points and customary complaints.

Nikola’s TSB is included, beneath:

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

A salesman at a Nikola vendor 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 brief situation to deal with 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 can enhance the scenario?
3. At the very least one early Nikola buyer advised us they’d to purchase all new chargers as a result of their unique charging answer wouldn’t “wake” the vans. Is that resolved/what chargers work greatest with Nikola vans?
4. I even have a salesman at a Nikola vendor 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 a number of days of ready and asking for updates, we acquired the next non-response from Nikola’s comms staff: Presently, 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,” stated Fred Lambert, Electrek editor-in-chief, after we talked about this story. “In the event that they’re not responding, they gained’t, or they’re making an attempt to therapeutic massage the reality.”

I whole-heartedly agree with Fred. It could 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 capability to proceed as a going concern has and continues to adversely have an effect on our capability to acquire new financing on affordable phrases or in any respect. If we can’t elevate extra capital after we want it, we might must considerably cut back our spending, delay, reduce or cancel some or all of our deliberate enterprise actions or operations, promote belongings, 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 lowered our workforce with the intention to higher align our staffing with our present wants. Nonetheless, these reductions in power might end in unintended penalties and prices, akin to lack of institutional data, decreased morale, an antagonistic affect on our status and challenges in attracting new expertise in addition to retaining skilled staff sooner or later. If we can’t elevate 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 substantiate 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, moderately 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 dying spiral for Nikola:

It’s honest to notice that Nikola’s issues should 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.