Nikola Stock Is Tumbling Today: What's Going On?

Nikola Corp NKLA shares are trading lower Monday after the company announced the voluntary recall of more than 200 vehicles. 

What Happened: Late Friday, Nikola said it was voluntarily recalling approximately 209 Class 8 Tre battery-electric vehicles as a precautionary measure. 

"Nikola is currently in the process of filing this voluntary recall with the National Highway Traffic Safety Administration (NHTSA) and is placing a temporary hold on new BEV sales until a resolution is in place," the company said. 

Last month, Nikola reported a fire near its headquarters. A presentation of findings from a third-party investigator showed that a coolant leak inside a single battery pack was the probable cause. Nikola noted that the findings "were further corroborated by a minor thermal incident" that impacted one pack on an engineering validation truck parked at the company's Arizona plant on Aug. 10. 

Nikola believes a single supplier component within the battery pack is likely the source of the leak. The company said it's working to provide a remedy in the coming weeks. 

"At Nikola we take safety very seriously. We stated from the beginning that as soon as our investigations were concluded we would provide an update, and we will continue our transparency as we learn more," said Steve Girsky, CEO of Nikola.

See Also: Elon Musk's Tesla Slashes Model Y Prices In China By About $1,900

NKLA Price Action: Nikola shares were down 16.4% at $1.62 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nikola.