Cash-strapped hydrogen truck maker Nikola is facing tough times — and its most recent round of layoffs has halted production of its controversial hydrogen fuel cell semi trucks as the company faces down bankruptcy (again).
Last week, we received a tip from someone claiming to be a Nikola insider saying that the company was planning to halt production of its hydrogen fuel cell-powered semi trucks. That tip was followed quickly by news that Nikola’s stock had sunk to a 52-week low, and a formal NHTSA complaint claiming the fuel cell shuts down unpredictably.
A TSB was issued by the truck maker that seemed to address the issues outlined, and the assumption was that the unconfirmed tip was related to the TSB.
For the uninitiated, a TSB is a technical service bulletin. Not quite a recall, a TSB is typically issued for what the manufacturer considers non-safety-related problems, and serves as a diagnostic tool for mechanics in the field when faced with known issues and common complaints.
Nikola’s TSB is included, below:
Now, however, it seems that the production shutdown at Nikola might be something more permanent.
A salesperson at a Nikola dealer who asked not be named told me he was instructed not to accept purchase orders on the hydrogen fuel cell trucks for the foreseeable future. Additionally, we reached out to Nikola last week with three relatively simple questions. Those being:
- We received a tip from someone claiming to be a Nikola employee saying that Nikola was going to halt production of the hydrogen trucks. Is that true? If it is, is that a permanent stop or a temporary issue to address the NHTSA complaint/display recall?
- Is the TSB mentioned here https://electrek.co/2024/12/06/hydrogen-early-adopter-faces-big-problems-amid-nikola-challenges/ related to the breakdowns/are you confident that will improve the situation?
- At least one early Nikola customer told us they had to buy all new chargers because their original charging solution wouldn’t “wake” the trucks. Is that resolved/what chargers work best with Nikola trucks?
- I also have a salesperson at a Nikola dealer saying he’s been told not to take POs on the hydrogen trucks until further notice. Curious if you have a comment on that, also?
After a few days of waiting and asking for updates, we received the following non-response from Nikola’s comms team: At this time, we are unable to comment. I will let you know if that changes.
It doesn’t take days to say “no”
“Yeah, this takes a minute to verify,” said Fred Lambert, Electrek editor-in-chief, when we talked about this story. “If they’re not responding, they won’t, or they’re trying to massage the truth.”
I whole-heartedly agree with Fred. It would take a handful of seconds to say, “We’re still building trucks, let me get back to you on the rest,” but the refusal to comment, the delay, coupled with the company’s latest SEC filing that included the depressing language (below), doesn’t do much to instill confidence in Nikola’s future prospects.
Further, the doubt regarding our ability to continue as a going concern has and continues to adversely affect our ability to obtain new financing on reasonable terms or at all. If we cannot raise additional capital when we need it, we may have to significantly reduce our spending, delay, scale back or cancel some or all of our planned business activities or operations, sell assets, or substantially change our corporate structure, and we may not have sufficient resources to conduct our business as planned or at all. For example, in October and December 2024, we reduced our workforce in order to better align our staffing with our current needs. However, these reductions in force may result in unintended consequences and costs, such as loss of institutional knowledge, decreased morale, an adverse impact on our reputation and challenges in attracting new talent as well as retaining experienced employees in the future. If we cannot raise sufficient capital when needed, we may be forced to further curtail or to discontinue our operations, which would materially and adversely affect our financial condition, results of operations, business, and prospects, and may result in a loss of your investment.
What’s more, Reddit user Patron_1969 (a profile that links back to a Nikola worker) also seems to confirm that the production shutdown is real, buy says that it’s due to the company’s latest round of layoffs and attempts at cost-savings, rather than the unpredictable failures of the hydrogen drivetrain featured in the NHTSA complaint.
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With rumors swirling, official communications on lockdowns, and tipsters speaking up on email and social media outlets, it’s tough to do anything but assume the worst for Nikola.
It appears to be the end of a 4-year-long death spiral for Nikola:
It’s fair to note that Nikola’s problems are not necessarily indicative of the broader BEV and FCEV truck market.
The company’s problems went beyond the difficulties of delivering a new technology to an established trucking industry.
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