Electric truck maker Nikola Corp. (NASDAQ: NKLA) had one of its trucks catch on fire. It may not be the same one that caught on fire with a few others in June. However, the trouble damages a company that is probably already damaged beyond repair.
Trucks do catch on fire occasionally. This happened with several Ford F-150 Lightnings. Ford can weather this, given its size, balance sheet and brand. A tiny startup is another matter. (These are the 15 most fuel-efficient trucks.)
Reuters, which reported the fire, wrote that “At approximately 2 pm today at Nikola HQ, one of the trucks that was previously damaged reignited. No one was injured and the fire was quickly contained.” That is no one except management’s reputation.
Nikola’s stock rose earlier this month due to a deal for BayoTech, a modest-size hydrogen producer, which will buy up to 50 Nikola Class 8 hydrogen fuel cell trucks between now and 2028. In addition, a huge German company, Bosch, said it would begin production of its fuel-cell power product, with Nikola as the anchor customer.
Neither deal can do much to save Nikola, which trades as a penny stock for $2.50 a share. That is down 57% in the past year.
Nikola’s finances are a train wreck. In the most recent quarter, it announced 31 wholesale deliveries to dealers and 33 retail sales to end customers. That fails to represent even modest success.
In the same period, Nikola lost $169 million on $11 million of revenue.
In a crowded electric vehicle market with dozens of competitors, some of which are huge, Nikola does not have a chance.
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