Nikola (NKLA) expands dealer network into Canada

Nikola Corporation (NASDAQ: NKLA) unveiled their plans Friday to broaden its dealer network into Canada for the sale of heavy-duty trucks, marking a strategic partnership with trailer manufacturer ITD Industries. This development led to a 5% surge in the electric-truck maker's shares during morning trading.

Nikola, a manufacturer of Class 8 trucks powered by both batteries and fuel cells, has encountered a series of challenges. Notably, in September, the company faced two vehicle fires within a week.

In August, Nikola announced a recall of all its previously delivered battery-powered electric trucks due to coolant leaks discovered within the battery pack.

However, CEO Steve Girsky assured investors during a Wednesday presentation that the battery electric truck recall would not impact the production or delivery of their fuel cell electric vehicles. He explained that these vehicles utilize a distinct battery pack supplied by a different provider. Furthermore, Girsky stated that the company intends to commence deliveries of its hydrogen fuel cell vehicles in late September and early October.

Shares of NKLA are up 2.60% in afternoon trading Friday.

By Michael Elkins | [email protected]

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