Hydrogen early adopter faces large issues amid Nikola challenges

Nikola inventory sinks to a 52-week low, a NHTSA grievance claiming the gasoline cell shuts down unpredictably, and one in every of hydrogen’s early adopters stays unconvinced. Is it time for Nikola to throw within the towel on hydrogen?

William Corridor’s Coyote Container firm made headlines earlier this yr, when it turned the primary firm to efficiently full a 400-mile supply in a Nikola Tre semi truck powered by a hydrogen gasoline cell.

Corridor, Managing Member and Founding father of Coyote Container, drove the hydrogen Nikola over the hilly, 400-mile route that took the truck and its 17.7 ton trailer by means of California’s Altamont Cross and Grapevine Canyon on the I-5 interstate between the Port of Oakland and the Port of Los Angeles in Lengthy Seaside. The journey appeared like a ringing endorsement for the hydrogen-powered vehicles. Practically a yr later, although, William appears to have soured on the early adopter expertise, particularly citing higher-than-anticipated working prices, gasoline prices, weight limitations, and guarantee considerations.

Coyote Container’s Nikola

“The truck prices 5 to 10 occasions that of an ordinary Class 8 drayage [truck],” Corridor informed Clear Trucking. “On high of that, you pay 5 to 10 occasions the Federal Excise Tax (FET) and native gross sales tax, [which comes to] roughly 22%. For those who add the ten% reserve not lined by any voucher program, you might be at 32%. Thirty-two % of $500,000 is $160,000 for the trucker to by some means pay [out of pocket].”

Coyote Container isn’t alone in expressing considerations concerning the practicality of hydrogen vehicles generally, however there are considerations about Nikola’s hydrogen semi truck, particularly.

In an official NHTSA grievance made in opposition to one Nikola HFCEV, the truck skilled 5 roadside propulsion outages leading to three towings and two situations the place the truck needed to limp residence on battery energy. The failure was unpredictable, reducing off energy whereas the automobile confirmed between 20 and 140 miles left of FC vary.

The primary such incident occurred with about 900 miles on the truck’s odometer, whereas the newest occurred at 28,340 miles. You may learn extra concerning the Nikola NHTSA grievance, beneath – or simply learn Corridor’s abstract of the scenario, in his personal phrases: I’ve handled extra tow vehicles within the final 10 months than in my whole 62 years on this Earth.

NHTSA ID Nu. 11621826

Whereas no recall has been issued for the above situation but, the corporate has been no stranger to remembers prior to now, and could also be delicate about issuing one other one as its inventory reaches a brand new 52-week low (extra on that in a minute).

Regardless, the corporate issued a technical service bulletin (TSB) on October twenty ninth, simply 13 days after the official NHTSA grievance was filed.

The TSB itself mentions that, “a coolant becoming might come unfastened resulting from extra rigidity on a coolant line. Extension of the hose returns the stress to an applicable degree,” however whereas it’s unclear whether or not or not the TSB is meant to handle the propulsion system, what is obvious is that the TSB impacts VINs 001-266 – successfully all of the Nikola hydrogen semis presently on the highway (as of September 30, Nikola reported promoting 235 hydrogen semis).

And as for what it prices to replenish a type of 266 hydrogen semis? Corridor says it’s inconceivable to inform. “Nobody will inform you what the H2 gasoline prices,” he mentioned. “It is because it’s being backed by the truck producers by artificially elevating truck pricing. This can be a extreme market distortion.”

Corridor additionally mentioned the added weight of the truck’s hydrogen system, in comparison with a traditional semi, was additionally hurting his capacity to function the vehicles. “A Nikola Tre FCEV weighs 27,000 kilos versus my heaviest [diesel] sleeper weighing 19,400 kilos,” he informed Clear Trucking, in that very same interview. “Most drayage vehicles weigh between 16,000 to 18,000 kilos. Shippers max out cargo each time they will, so I’ve to continually swap to a diesel with the intention to be highway authorized.”

A better GVWR ranking for ZEV vehicles, particularly on drayage amenities and on off-highway routes with decrease relative speeds, may assist mitigate that situation with out including extreme danger at freeway speeds.

That gained’t occur in a single day, nonetheless, and Corridor is dropping endurance.

The Coyote Container founder took to LinkedIn to vent. There, he shared some ideas on a Looking for Alpha article calling Nikola a, “robust promote.” Corridor wrote, “I’ve skilled an incredible quantity of guarantee restore down time within the final 14 weeks solely making 5 of my weekly journeys from Oakland to Lengthy Seaside. Coping with battery failures and gasoline cell shutdowns.”

Dave Baiocchi, Normal Supervisor of ETHERO Truck + Power (the promoting seller), selected to answer Corridor publicly, writing in protection of Nikola, “I feel it’s truthful to say that as a particularly early adopter of this know-how, and with one of many first models off the meeting line this truck has served you properly.”

Nikola just lately celebrated the manufacturing of its three hundredth hydrogen semi truck on the firm’s Coolidge, Arizona facility. Nikola’s third-quarter internet income reached $25.2 million, falling in need of Wall Avenue estimates of $37.2 million. The miss was blamed on the sudden prices related to the repurchasing of 20 battery-electric Nikola Tre vehicles in October.

Electrek’s Take

Regardless of what is likely to be perceived because the unfavorable tone of this text, I need Nikola to succeed. I need to see a brand new American truck firm work out a solution to succeed, and a solution to proceed to develop. That mentioned, having proxy arguments along with your prospects about very actual, very regarding points on social media – and thru your sellers – isn’t the best way to do this.

We (I) reached out to Nikola workers by means of each electronic mail and LinkedIn on Tuesday relating to these info and different (as but) unsubstantiated rumors about its 2025 FCHEV manufacturing plans, however acquired no response as of EOD, Friday, when this story went dwell.

SOURCES | IMAGES: Gasoline Cell Works, NHTSA, Clear Trucking, Investing, Electrical-Automobiles.com, Looking for Alpha, and Coyote Container, by way of William Corridor (hyperlinks all through the article).