Overview

A class action lawsuit, captioned Tenneson v. Nikola Corporation, et al., No. 2:23cv02131 (D. Ariz.), has been filed against Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) and certain of its top current and former executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent purchasers or acquirers of Nikola securities between February 24, 2022, and September 7, 2023, inclusive (the “Class Period”). 

Nikola purports to operate as an integrated zero-emissions transportation systems provider that designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure. One of the Company’s primary products is the Nikola Tre Class 8 truck, a battery-electric vehicle (“BEV”) that purportedly “integrates [the Company’s] electrified propulsion, technology, controls and infotainment[]” and “is expected to be one of the first zero emission Class 8 trucks to market.”

The Nikola lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company maintained deficient safety and structural controls related to its manufacturing of battery components; (ii) the foregoing deficiencies rendered Nikola’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On June 23, 2023, a Nikola Tre BEV caught fire at the Company’s headquarters, with the fire ultimately spreading to four other trucks and prompting Nikola to open an investigation into the incident. That same morning, Nikola posted a tweet in response to the fire, stating, in relevant part, that “[f]oul play is suspected as a vehicle was seen in the area of the affected trucks just prior to the incident and an investigation is underway.”  Following news of the fire, despite Nikola’s suggestion of foul play, the Company’s stock price fell $0.09 per share, or 6.52%, to close at $1.29 per share on June 23, 2023.

Thereafter, on August 11, 2023, in contrast with the Company’s earlier suggestion of foul play, Nikola issued a recall of all 209 battery-electric trucks that it had delivered or built to date after the investigation found that a coolant leak inside a battery pack had caused the fire.

Following news of the recall, Nikola’s stock price fell $0.13 per share, or 6.67%, to close at $1.82 per share on August 14, 2023.

Then, on September 4, 2023, as a result of the same battery pack deficiencies that caused the June 23, 2023 fire, a third Nikola BEV truck caught fire at a warehouse in Tempe, Arizona.

Finally, on September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near the Company’s headquarters. In a statement sent to Electrek.com, a news website focused on electric transportation and sustainable energy, the Company stated, in relevant part, that “there was a thermal incident with one engineering validation battery-electric truck near Nikola’s Phoenix headquarters. No one was injured. This pre-production truck was outside and undergoing battery fire investigation and testing.”

On this news, Nikola’s stock price fell $0.16 per share, or 15.38%, to close at $0.88 per share on September 8, 2023.

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If you purchased Nikola securities during the Class Period and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Nikola lawsuit is December 12, 2023.