According to foreign media The Verge, zero-emission truck company Nikola (Nikola) has closed its Powersports division and suspended the research and development of an electric personal jet ski and off-road vehicle first announced in April 2019. The reason why Nikola stopped working on these projects is part of his greater effort-focusing on the company’s first hydrogen-powered truck. It is reported that the car has encountered a series of setbacks in 2020.
“We still have the ownership of NZT and WAV, and the project has been suspended,” a spokesperson told The Verge. “Now we are focusing on commercial trucking and hydrogen infrastructure.”
After acquiring a more promising start-up company in 2017, Nikola began pursuing an electric jet ski. This motorcycle uses a hybrid system and mixes the shape of a dune car with the comfort of a passenger car. Nicolas promised that this NZT will have an output of 590 horsepower and a range of 150 miles. It was supposed to be available this year, with a starting price of $80,000.
It is reported that the two vehicles launched by Powersports are a major focus of Nikola’s 2019 annual event, but considering the interest of the defense industry in them, NZT seems likely to become a cash cow for this startup.
The Powersports department is not the first victim of Nikolai’s tough 2020. After falling out with General Motors (GM), the startup’s pickup project also failed. Before being accused of fraud, GM had been supporting Nikolai.
On Thursday afternoon local time, Nikola announced the dissolution of its Powersports division, and also announced the financial results for 2020. According to the report, the company lost US$384 million in the year, but because of the profits generated during the earlier listing, the company had US$840 million in bank deposits.