Nikola Corporation stock is trading significantly higher today, with a surge of 13.91%. This increase comes as investors react to an optimistic address by the company’s President and CEO, Steve Girsky.
The sharp rebound comes after Nikola Corporation (NASDAQ: NKLA) shares plummeted by over 40% in the past month due to multiple thermal incidents involving the company’s electric vehicles.
Nikola Corporation’s President and CEO, Steve Girsky, took center stage in a recent webcast titled “CEO Fireside Chat and Q&A” on Wednesday.
Girsky discussed the battery-electric truck recall that happened in June because of a few thermal incidents. He explained that an initial investigation found that a coolant leak in one of the battery packs caused the fires. The company has not yet given an estimate of how much the recall and repairs will cost. However, Girsky announced that the company plans to replace the coolant lines that connect to the battery packs to fix the problem.
Girsky assured stakeholders that the recall and safety solutions for the electric vehicle incidents are well underway at the Arizona manufacturing facility. The focus is on achieving maximum effectiveness and efficiency in implementing these measures.
The CEO also highlighted Nikola’s hydrogen fuel cell vehicles (FCEVs) and hydrogen infrastructure plans, which remain unaffected by the BEV recall. Girsky announced that FCEV deliveries are set to commence later this month, with an extravagant launch event scheduled for September 28.
Moreover, Girsky reinforced Nikola’s position as a leader in hydrogen refueling solutions and highlighted ambitious plans for hydrogen infrastructure and a hydrogen highway launch in California.
The CEO also underscored strong consumer demand for Nikola’s vehicles. He cited state and federal EV rebates and incentives as factors that drive increased consumer interest and incentivize customer purchases.
Per Benzinga Pro data, Nikola Corporation stock is trading at $1.31, up 13.91% over the last trading session. This surge is accompanied by extraordinarily high trading volume, with over 135 million shares traded in this session. It significantly surpasses the stock’s average trading volume of 88.384 million.