The timing of the blaze is indeed suspicious, because last week, Nikola announced plans to cut 270 employees — which represents 23% of the company’s total workforce. Of those laid off employees, 120 worked at the Arizona facility, while 150 worked elsewhere in support of Nikola’s sales efforts in Europe. The layoffs are part of a larger reorganization plan that the company hopes will save more than $50 million annually.
Shares of Nikola stock on the tech-heavy NASDAQ exchange were down as much as 15% with news of the fire, but have since halved that initial loss. Year-to-date, Nikola shares have plummeted more than 40%.
Nikola’s rival Tesla is also battling sluggish production of its eponymous Semi truck. Tesla CEO Elon Musk recently indicated that sales were not going to ramp up significantly until late next year. That counters an earlier prediction by Musk that 50,000 units would be delivered during 2024. The delay was blamed on a lack of available batteries.
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