Nikola, the electric vehicle company, has announced a recall of around 209 battery-powered commercial trucks due to a malfunction that causes their batteries to overheat. This recall affects almost all of the trucks that have been shipped to customers. However, it does not impact the hydrogen fuel cell-powered trucks, which are a mainstay of Nikola’s business.

The battery issue was discovered in June after a fire broke out in a parked truck at Nikola’s headquarters. This development adds to the challenges already faced by the company, including the departure of its CEO and a lack of demand for its fuel cell-powered vehicles.

Analysts have expressed concerns about Nikola’s stock. Daniel Ives of Wedbush reiterated a Hold rating on Nkla Stock, highlighting lowered production guidance as a concern while recognizing the company’s efforts to reduce its cash burn rate. Meanwhile, Michael Shlisky of D.A. Davidson also reiterated a Hold rating, contributing to a consensus rating of Hold for NKLA stock with a $2.75 price target, suggesting a potential 41% upside.

Year-to-date, NKLA stock has experienced a decline of 12.16%.

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