Hydrogen early adopter faces huge issues amid Nikola challenges

Nikola inventory sinks to a 52-week low, a NHTSA criticism 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 grew to become 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 California’s Altamont Go 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. Almost 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%. When you add the ten% reserve not lined by any voucher program, you’re at 32%. Thirty-two p.c of $500,000 is $160,000 for the trucker to one way or the other pay [out of pocket].”

Coyote Container isn’t alone in expressing considerations in regards to the practicality of hydrogen vehicles normally, however there are considerations about Nikola’s hydrogen semi truck, specifically.

In an official NHTSA criticism 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 dwelling on battery energy. The failure was unpredictable, reducing off energy whereas the car 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 in regards to the Nikola NHTSA criticism, under – or simply learn Corridor’s abstract of the state of affairs, in his personal phrases: I’ve handled extra tow vehicles within the final 10 months than in my complete 62 years on this Earth.

NHTSA ID Nu. 11621826

Whereas no recall has been issued for the above subject but, the corporate has been no stranger to remembers 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 criticism was filed.

The TSB itself mentions that, “a coolant becoming could 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 deal with the propulsion system, what is evident is that the TSB impacts VINs 001-266 – successfully all of the Nikola hydrogen semis presently on the street (as of September 30, Nikola reported promoting 235 hydrogen semis).

And as for what it prices to refill 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’s because it’s being backed by the truck producers by artificially elevating truck pricing. This can be a extreme market distortion.”

Corridor additionally stated the added weight of the truck’s hydrogen system, in comparison with a traditional semi, was additionally hurting his means to function the vehicles. “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 vehicles weigh between 16,000 to 18,000 kilos. Shippers max out cargo at any time when they will, so I’ve to consistently change to a diesel so as to be street authorized.”

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

That received’t occur in a single day, nonetheless, and Corridor is dropping persistence.

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, Common Supervisor of ETHERO Truck + Vitality (the promoting vendor), selected to reply to Corridor publicly, writing in protection of Nikola, “I believe it’s honest to say that as a particularly early adopter of this expertise, and with one of many first items off the meeting line this truck has served you nicely.”

Nikola lately 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 Road estimates of $37.2 million. The miss was blamed on the surprising prices related to the repurchasing of 20 battery-electric Nikola Tre vehicles in October.

Electrek’s Take

Regardless of what may be perceived because the detrimental tone of this text, I would like Nikola to succeed. I need to see a brand new American truck firm work out a approach to succeed, and a approach to proceed to develop. That stated, having proxy arguments together with your prospects about very actual, very regarding points on social media – and thru your sellers – isn’t the way in which to try this.

We (I) reached out to Nikola employees by each e-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-Autos.com, Looking for Alpha, and Coyote Container, by way of William Corridor (hyperlinks all through the article).