Hydrogen early adopter faces huge issues amid Nikola challenges

Nikola inventory sinks to a 52-week low, a NHTSA grievance claiming the gasoline cell shuts down unpredictably, and certainly one 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 12 months, 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 way 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 Seashore. The journey appeared like a ringing endorsement for the hydrogen-powered vans. Practically a 12 months 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 instances that of a typical Class 8 drayage [truck],” Corridor instructed Clear Trucking. “On high of that, you pay 5 to 10 instances the Federal Excise Tax (FET) and native gross sales tax, [which comes to] roughly 22%. Should you add the ten% reserve not coated by any voucher program, you might be at 32%. Thirty-two % of $500,000 is $160,000 for the trucker to in some way pay [out of pocket].”

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

In an official NHTSA grievance made towards one Nikola HFCEV, the truck skilled 5 roadside propulsion outages leading to three towings and two cases the place the truck needed to limp dwelling on battery energy. The failure was unpredictable, chopping 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, under – or simply learn Corridor’s abstract of the state of affairs, in his personal phrases: I’ve handled extra tow vans within the final 10 months than in my total 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 recollects previously, 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 free because of extra rigidity on a coolant line. Extension of the hose returns the strain to an applicable stage,” however whereas it’s unclear whether or not or not the TSB is meant to handle the propulsion system, what is evident 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 kind of 266 hydrogen semis? Corridor says it’s unimaginable to inform. “Nobody will inform you what the H2 gasoline prices,” he stated. “It is because it’s being sponsored by the truck producers by artificially elevating truck pricing. It is a extreme market distortion.”

Corridor additionally stated the added weight of the truck’s hydrogen system, in comparison with a standard semi, was additionally hurting his means to function the vans. “A Nikola Tre FCEV weighs 27,000 kilos versus my heaviest [diesel] sleeper weighing 19,400 kilos,” he instructed Clear Trucking, in that very same interview. “Most drayage vans weigh between 16,000 to 18,000 kilos. Shippers max out cargo every time they will, so I’ve to consistently change to a diesel with a view to be highway authorized.”

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

That received’t occur in a single day, nevertheless, and Corridor is dropping endurance.

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

Dave Baiocchi, Normal Supervisor of ETHERO Truck + Vitality (the promoting supplier), selected to reply to Corridor publicly, writing in protection of Nikola, “I believe it’s truthful to say that as an especially early adopter of this know-how, and with one of many first models off the meeting line this truck has served you effectively.”

Nikola not too long ago celebrated the manufacturing of its three hundredth hydrogen semi truck on the firm’s Coolidge, Arizona facility. Nikola’s third-quarter web 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 vans in October.

Electrek’s Take

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

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

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