The stock of Nikola, a company specializing in hydrogen-fuel-cell electric trucks, has seen a significant climb recently. Following investor concerns, management has revealed that the company will begin delivering its trucks in late September and early October.
Nikola shares were surging 15% in premarket trading on Friday, reaching $1.32. This comes after a decline of 47% throughout the year, prompted by management transitions and recent truck recalls.
During a fireside chat, CEO Steve Girsky addressed the recall of over 200 battery-electric heavy-duty trucks due to fire risks. Girsky assured investors that the issue is being addressed by working closely with suppliers to obtain the necessary parts. All fixes will undergo thorough validation testing prior to being released.
Girsky emphasized that the recall does not impact the production or delivery of the fuel-cell electric vehicles, as they use a different battery pack from a different supplier.
Investors responded positively to the updates, leading to a 32% jump in Nikola shares on Thursday, reaching $1.15. This marked the sixth-best one-day performance on record according to Dow Jones Market Data.
The surge in stock value today is unrelated to the first-ever partial strike initiated by the United Auto Workers union against the Big Three auto makers. This strike does not impact Nikola.
As the week comes to a close, more business updates were announced. Nikola revealed plans to expand its dealer network to Canada for sales and service coverage of its Class 8 trucks. This expansion will be carried out in partnership with trailer manufacturer ITD Industries.
Nikola expressed confidence in the Canadian market, citing its supportive population, industry, and government’s commitment to addressing climate change and transitioning towards hydrogen and cleaner fuels.
