Nikola's stock sinks to a 52-week low, an NHTSA complaint says the fuel cell shuts down unexpectedly, and one of the first hydrogen recipients remains uncertain. Is it time for Nikola to throw in the towel on hydrogen?
William Hall's company Coyote Container made headlines earlier this year, when it became the first company to successfully complete a 400-mile delivery with a Nikola Tre semi truck powered by a hydrogen fuel cell.
Hall, Managing Member and Founder of Coyote Container, drove the hydrogen Nikola over a hilly, 400-mile route that took the truck and its 17.7-ton trailer through California's Altamont Pass and Grapevine Canyon on the I-5 highway. between the Port of Oakland and the Port of Los Angeles in Long Beach. The trip was seen as a strong case for hydrogen-powered trucks. However, nearly a year later, William seems upset about the early adoption experience, mostly citing higher-than-expected operating costs, fuel costs, weight limitations, and warranty concerns.
Nikola of Coyote Container
“The truck costs five to ten times more than a standard Class 8 truck [truck],” Hall said Clean Trucks. “On top of that, you pay five to ten times the Federal Excise Tax (FET) and local sales tax, [which comes to] about 22%. If you add the 10% off any voucher program, you're at 32%. Thirty-two percent of $500,000 is $160,000 for the trucker to pay one way or another. [out of pocket].”
Coyote Container is not alone in raising concerns about the performance of hydrogen trucks in general, but there are concerns about Nikola's hydrogen semi truck, in particular.
In an official NHTSA complaint filed against one Nikola HFCEV, the truck experienced five road breakdowns resulting in three tows and two instances where the truck had to be limped home on battery power. The failure was unexpected, power was cut off while the vehicle was displaying between 20 and 140 miles left of FC range.
The first such incident occurred with approximately 900 miles on the truck's odometer, and the most recent occurred at 28,340 miles. You can read more about Nikola's NHTSA complaint, below – or just read Hall's summary of the situation, in his own words: I've dealt with more tow trucks in the last 10 months than in my entire 62 years on this Earth.
NHTSA ID No. 11621826
Although no recall has been issued for the above issue to date, the company has not been recalled in the past, and may be sympathetic to issuing another as its stock hits a 52-week low (more on that in a minute).
Regardless, the company issued a technical service bulletin (TSB) on October 29th, just 13 days after the official NHTSA complaint was filed.
The TSB itself states, “the cooler fitting may come loose due to excessive tension in the coolant line. The hose expansion restores the tension to the proper level,” but while it is not clear that the TSB is intended to address the transmission system, what is clear is that the TSB has an effect on VINs 001-266 – effectively. everything of Nikola hydrogen semis currently on the road (as of September 30, Nikola reported selling 235 hydrogen semis).
And as for how much it costs to fill up one of those 266 semi hydrogens? Hall says it's impossible to say. “No one will tell you how much H2 fuel costs,” he said. “This is because it is subsidized by truck manufacturers by increasing truck prices. This is a huge distortion of the market.”
Hall also said the extra weight of the truck's hydrogen system, compared to a conventional semi, also hurts his trucking ability. “The Nikola Tre FCEV weighs 27,000 kilograms compared to my heaviest weight. [diesel] a sleeping person weighing 19,400 kilograms,” he said Clean Trucksin that same conversation. “Most carts weigh between 16,000 and 18,000 kilograms. Shippers carry more cargo whenever they can, so I always have to switch to diesel to be road legal.”
A higher GVWR rating for ZEV trucks, especially in drainage areas and on off-highway roads with limited relative speed, can help reduce that problem without adding excessive risk at highway speeds.
However, that won't happen overnight, and Hall is getting impatient.
Coyote Container's founder took to LinkedIn to vent. There, he shared some thoughts on a Looking for an Alpha A title that Nikola calls, “a strong sell.” Hall wrote, “I experienced an amazing warranty repair 14 weeks ago just making my five week trip from Oakland to Long Beach. Dealing with battery failure and fuel cell shutdown.”
Dave Baiocchi, General Manager of ETHERO Truck + Energy (retailer), chose to respond to the Hall publicly, writing in defense of Nikola, “I think it is fair to say that as an early adopter of this technology, and one of them. the first units off the assembly line this truck has served you well.”
Nikola recently celebrated the production of its 300th hydrogen semi truck at the company's Coolidge, Arizona facility. Nikola's third-quarter net income came in at $25.2 million, falling short of Wall Street estimates of $37.2 million. The loss was blamed on unexpected costs related to the repurchase of 20 Nikola Tre battery-operated trucks in October.
Electrek's Take
Despite what might be considered the negative tone of this article, I want Nikola to succeed. I search to see a new American trucking company find a way to succeed, and a way to continue to grow. That said, having representative discussions with your customers about real, high-impact issues on social media – and your vendors – that's not the way to do it.
We (I) reached out to Nikola employees via both email and LinkedIn on Tuesday about these facts and other (so far) unsubstantiated rumors about its 2025 FCHEV production plans, but have not received a response as of EOD, Friday, when this story it goes live.
SOURCES | PHOTOS: Fuel Cell Works, NHTSA, Clean Trucks, Investing, Electric-Vehicles.com, Seeking Alpha, and Coyote Container, via William Hall (links throughout article).
FTC: We use auto affiliate links to earn income. More.
