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 vehicles as the corporate faces down chapter (once more).

Final week, we obtained 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 vehicles. That tip was adopted rapidly by information that Nikola’s inventory had sunk to a 52-week low, and a proper NHTSA grievance claiming the gasoline cell shuts down unpredictably.

A TSB was issued by the truck maker that appeared to handle 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 often issued for what the producer considers non-safety-related issues, and serves as a diagnostic software for mechanics within the discipline when confronted with identified points and customary complaints.

Nikola’s TSB is included, beneath:

Now, nevertheless, it appears that evidently the manufacturing shutdown at Nikola is perhaps one thing extra everlasting.

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

1. We obtained 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 problem 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 state of affairs?
3. No less than 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 vehicles. Is that resolved/what chargers work greatest with Nikola vehicles?
4. I even have a salesman at a Nikola supplier saying he’s been advised 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 obtained the next non-response from Nikola’s comms group: Right now, 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, 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 will take a handful of seconds to say, “We’re nonetheless constructing vehicles, let me get again to you on the remaining,” 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 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 not elevate further capital after we want it, we might need to 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 adequate sources 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. Nonetheless, these reductions in drive might end in unintended penalties and prices, reminiscent of lack of institutional data, decreased morale, an adversarial impression on our status and challenges in attracting new expertise in addition to retaining skilled workers sooner or later. If we can not elevate adequate capital when wanted, we could also be compelled 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 will end in a lack of your funding.

NIKOLA SEC FILINGS

What’s extra, Reddit consumer 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 because of the firm’s newest spherical of layoffs and makes an attempt at cost-savings, slightly 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 e-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 demise 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.