Shares of Nikola (NASDAQ:NKLA) stock are accelerating higher by about 33% after President and CEO Steve Girsky hosted a “fireside chat” and Q&A session for stockholders. Girsky was appointed as Nikola’s CEO last month, replacing Michael Lohscheller.
Girsky started off the session by emphasizing Nikola’s position in the zero-emission Class 8 truck market. He added that the competitive environment reminds him of when he joined General Motors (NYSE:GM) in 2009:
“I asked about Tesla and was told that it was just a bunch of engineers playing with laptop batteries. That was conventional wisdom at the time. And we know how that turned out – Tesla got a 10-year jump start on the entire industry. We have a similar opportunity at Nikola.”
NKLA Stock: CEO Steve Girsky Hosts “Fireside Chat” and Q&A Session
Girsky then goes on to explain Nikola’s recent achievements, such as beginning serial production of the hydrogen fuel cell electric truck, the initiation of customer fuel cell demos, and recently raising $125 million.
However, trouble has surrounded Nikola in recent months concerning its truck fires. In August, the company announced that it would recall every single battery-powered electric truck it has ever distributed due to coolant leak risks that could cause a fire. According to Electrek, Nikola has now experienced four fire incidents in four months involving eight of its trucks. Girsky had this to say on the matter:
“We have not encountered any concerns with those trucks that are in operation and we remain focused on maintaining ongoing communications with our customers and dealers to make sure they have all their questions answered and that they are confident in our trucks and satisfied with their performance.”
Nikola is currently in the process of transporting the damaged trucks to its manufacturing facility in Coolidge, Arizona, for repairs. The timeline and costs for the repairs are expected to be disclosed soon.
Afterward, Girsky answered questions about Nikola’s outlook. The company expects to deliver its hydrogen fuel cell electric truck to dealers in late September and early October. To date, Nikola has received 210 non-binding orders for the truck from customers like JB Hunt (NASDAQ:JBHT) and Biagi Brothers.
“We want you all to be aware that the battery-electric truck recall does not affect the production or deliveries of the fuel cell electric vehicle since it uses a different battery pack from a different supplier.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
