Shares of Nikola, a company that makes electric semi trucks, are slumping in the premarket after it said one of its vehicles that was damaged in a fire last month reignited on Sunday afternoon. The company suspects foul play and says it will release more information as the investigation continues.
The fire at the company’s Phoenix, Arizona headquarters was reported on Friday morning and caused several trucks to catch fire. Several trucks had to be evacuated as the fire burned for hours, and hazardous materials crews were called in to spray down the burning trucks with water. Fortunately, no one was injured. “Foul play is suspected as a vehicle was seen in the area of the affected trucks just prior to the incident, and an investigation is underway,” the company tweeted Friday.
A month ago, Nikola reported a fire around its headquarters that damaged multiple electric semi-trucks. The company suspects foul play and has a significant short interest in its stock.
What prompted the truck to reignite is unclear, but Benzinga’s sources tell us it may have been due to the battery. EV batteries contain lithium; when they are damaged, the chemicals can mix up and cause a fire. Our experts say this can happen even if you only puncture the outer layer of the battery. They add that it is also possible for an electric car or truck to enter a thermal runway when the battery starts heating up faster than it can cool down and then keeps heating up in a self-destructive loop.
When the trucks that were damaged in the fire reignited on Sunday, they were not being operated and did not pose a risk to employees or other vehicles on site. The damaged trucks were kept at the company’s Phoenix site for “safety monitoring and the ongoing investigations.”
Nikola, founded in 2014 and touted a line of hydrogen-powered electric semi-trucks, is still trying to break into the freight industry. It landed a deal with Fortescue Future Industries earlier this year and has received orders for over 60 Class 8 Nikola semi-trucks from BayoTech. The company also announced layoffs a week ago to save money and scale back its business.
The company had about 270 employees based in Phoenix and another 150 team members in Europe. The layoffs come after the company slashed nearly 300 jobs as its cash to run the company shrinks. Nikola also scrapped plans for a consumer-focused electric pickup truck as it shifted resources toward its commercial fleets.
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