Nikola had major defect in its Romeo battery, may have caused truck fire
Nikola Corporation had a significant safety defect in the battery modules used in its electric semi trucks that can result in fires. Yet, the company was quick to claim “foul play” when five trucks caught on fire at its headquarters last week.
Nikola says that it is still investigating the situation.
Last week, we reported on the Phoenix fire department confirming that five Nikola semitrucks caught on fire at their headquarters. The company was quick to tell the public it believed “foul play” was involved in the fire, but it didn’t have a lot of evidence to back the claim. It only mentioned that a vehicle was seen on the scene prior to the fire.
The Phoenix fire department was still investigating the fire at the time Nikola made that statement. We contacted the fire department to ask for an update on the investigation when it is available, but we haven’t received an update yet.
In the meantime, we received concerning information about the battery modules that Nikola uses in its electric trucks, which company insiders believe could have led to the fire.
Nikola gets its battery modules for its Tre semitruck from Romeo Power, a company that it acquired last year after already being its main client for battery pack design and manufacturing. Romeo designed and produced the Hermes and Legion battery modules for the Nikola Tre.
Last year, engineers working on the battery modules detected a major problem where the cells were corroded and would self-discharge.
Electrek saw an internal report that investigated the issue:
A team inspected a number of modules in production, and many had the same issue.
They eventually tracked the problem down to the laser welding puncturing some of the battery cells in the modules.
The tests in the report were performed on the Hermes module because, unlike the Legion module, it doesn’t have potting on the cells, which can hide the puncture issue, but the problem was first identified in the Legion module, which is the one that was delivered to Nikola during the time it started production of the Tre, according to a source familiar with the matter.
Electrek was shown a video of the problem with the cells corroding within only two cycles in some cases:
The corrosion can create heat generation and increase resistance at the joint.
It can create several problems, including lithium plating and an imbalance in the voltage delta, which was mentioned in Romeo Power’s report on the issue:
These issues could all lead to potential thermal events in the battery packs, according to the insider, especially as they continue to cycle.
According to a former Romeo employee with knowledge of the problem, engineering executives recommended shutting down the production of the modules, but Susan Brennan, who was CEO of Romeo at the time, decided to keep production going and to try to fix the issue in parallel.
Electrek reached out to Brennan for an interview, but we didn’t get a response.
Nikola’s leadership was also made aware of the issue, but they already had millions of dollars worth of battery modules meant for its electric semitrucks, which the company was in a hurry to bring to production as it was hemorrhaging cash.
On top of it, the relationship of buyer-supplier between Romeo and Nikola was blurred now that the latter was acquiring the former.
A company insider told Electrek that Romeo kept producing potentially damaged battery modules for Nikola, and it is possible some of those battery modules could have made it into Nikola trucks.
While we can’t confirm that it led to the trucks catching on fire at its headquarters last week, it is a possibility, as punctured cells can lead to thermal events in batteries.
We contacted Nikola about this issue, and the company acknowledged that they were aware of the problem, but they believe no damaged modules have made their way into Nikola production trucks.
A spokesperson wrote in an email:
For production Nikola vehicles, Nikola requested Romeo not to ship known leaking modules. When weld issues were identified at Romeo’s end-of-line process, a quarantine process was implemented which required performance of a thorough inspection on every module, including end-of-line functionality checks. To our knowledge and based upon assurances made by our supplier Romeo, Nikola did not put any modules with weld issues in our production vehicles.
They claim to know that based on “assurances made by [their] supplier Romeo.” Romeo is now owned by Nikola, and we have seen evidence that the problem was ongoing when Nikola was producing the Tre. A company insider disputed that there was “a quarantine process.”
Also, it’s hard to confirm which modules have punctured cells, as the Legion module has potting hiding the joints of the cells.
A Nikola spokesperson tried to convince Electrek that the problem was only with the Hermes module while the Legion module was the one that ended up in the Tre, but a source familiar with both modules told Electrek that the cell puncture issue was first identified on a Legion module at Romeo Power’s Vernon facility. It was also identified in the production modules at the Cypress facility later on.
On top of the known battery problem, a company insider told Electrek that Nikola’s claim of “foul play” was a stretch. We were shown reports and videos of fire resistance testing showing the battery modules surviving extended exposure to powerful flames:
A company insider familiar with the battery modules told Electrek that “you could literally throw burning fuel on these packs and unless it’s sustained for a long period of time, you wouldn’t even notice.” Therefore, the insider finds it hard to believe that someone was able to light the trucks on fire – leading to battery pack fires.
Obviously, the situation looks better for Nikola if someone had set the trucks on fire rather than the fire potentially originating from the batteries.
When asked by Electrek if the company is still considering “foul play,” Nikola said that it is “not ruling out anything” and it is running “multiple investigations” that “could take weeks.”
The fire comes at a difficult time for Nikola. The company has only a few weeks left to convince its shareholders to let them issue more shares in order to raise more cash to keep the company going.
Issuing more shares would further dilute Nikola’s stock, which is already down almost 94% over the last two years.
Electrek’s Take
Obviously, we need an independent investigation into this issue by experts, but it is not a good look.
As for the foul play claim, I feel like we would already have clear information on this if it were true. I doubt that Nikola wouldn’t have cameras pointed at what was millions of dollars worth of brand-new electric trucks. If there had been any foul play, it would have been identified and made public by now.
On the other side, I saw clear evidence that Nikola had a major defect in its battery modules and solid insider sources that say those modules were shipped to Nikola with no clear evidence that the problem was ever fully solved before it produced the Tre truck.
The question seems to be if Nikola really understood the situation or not and the risk that came with using the modules amid the acquisition of Romeo, but it’s not a good look either way.
Normally, I’d find it hard to believe that a company would knowingly take the risk of putting those modules inside its vehicles, but it’s not impossible, considering the company was under tremendous pressure to deliver the truck.
Nikola has been working hard to distance itself from the era of Trevor Milton, its founder, and all the fraud that happened at the time, but I certainly wouldn’t be surprised to see them cut corners again. But it sounds like there’s also the potential that Nikola thought that the Legion modules were fine when they put them in their trucks.
And before all the NKLA investors jump on me for this report, no, I don’t have and never had a short position on Nikola. I would love for Nikola’s electric truck program to be successful, as I think removing emissions from trucking is an extremely important mission.
With that said, it needs to be made safely and sustainably. That doesn’t seem to be the case with Nikola right now.
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Tesla (TSLA) is not paying its bills, and this has led to at least two small American businesses going bankrupt. The automaker had over $110 million in liens with contractors over the last 5 years.
CNN released a new report that examines lien claims from contractors hired by Elon Musk’s companies in Texas, particularly Tesla.
In Texas, contractors have filed liens for more than $110 million against Tesla in the last five years. Over $24 million is still allegedly owed to dozens of businesses, according to the report.
In two cases, contractors, most often small American businesses, had to file for bankruptcy due to the unpaid bills.
The report highlights the example of a small pipe welding business that landed a multi-million-dollar contract with Tesla to build the Gigafactory Texas in Austin in 2022.
The owner, Jennifer Meissner, dedicated her whole crew to the project for a year, hired more people, and bought new equipment for the project, including some with loans she guaranteed herself:
For the first seven years Meissner’s company was in business, she prided herself on not once being late to pay her workers, she told CNN. After securing the business deal with Tesla in 2022, she said her company’s annual revenue grew exponentially, and she hired even more employees. With business booming, she was also hopeful that she would finally be able to start setting aside money for her special needs daughter, whom she adopted at the age of seven.
Her dream quickly turned into a nightmare when Tesla stopped paying its bills. It started putting incredible pressure on Meissner’s company, leading her to take more loans, thinking that Tesla would eventually pay.
Eventually, it led to her inability to pay her own employees and subcontractors, and ultimately, it contributed to her own bankruptcy.
Tesla ultimately paid $650,000 to cover her subcontractors, but claimed it was “overbilled.”
Another local small business, Full Circle Technologies, found itself in a similar situation after Tesla didn’t pay them $600,000 for installing security systems at the factory:
In bankruptcy filings, Full Circle Technologies said Tesla owed it nearly $600,000 and that it was “forced to take on short term high interest loans to bridge the gap between performing the work for Tesla and the payment for its services.” When a creditor began to levy the company’s bank accounts, the company said it had no option but to file for bankruptcy. Tesla then made its own claim in the bankruptcy hearings, stating Full Circle actually owed the carmaker money for allegedly breaching its contract. The two companies ultimately settled, but Full Circle CEO Abheeshek Sharma told CNN that Tesla was released from its obligation without paying a cent.
Another case involved Sun Coast Resources, a company that delivered fuel to Tesla’s factory, claiming that the automaker wasn’t paying millions in bills.
In this case, Tesla never denied receiving the fuel or subpar service, but it provided a myriad of procedural reasons to explain why it did not pay.
The case was publicized a bit earlier this year, and it was reportedly solved following the publicity.
All these cases are linked to Tesla, but some are pointing out that it is Elon Musk’s modus operandi, as his other companies also have a lot of lien claims against them.
The report found seven companies that filed for bankruptcy after Twitter simply stopped paying their bills after Musk acquired the company.
One of Tesla’s subcontractors said about Musk:
“His goal is to run through everything now – he doesn’t care what or who that impacts – to save the future of the world,” said one entrepreneur about his impression of Musk. He spoke with CNN anonymously and said he remains a fan of Musk but that Tesla has a reputation in Austin of leaving contractors desperate to get paid – noting that his company had to take out extra lines of credit while awaiting payment from Tesla. “Tesla was probably one of the only companies we did business with where it just felt like they absolutely did not care about putting a company out of business.”
In one of the lien cases, Tesla’s own outside counsel agreed that Tesla is not great at paying on time. He said: “I don’t disagree that it does take Tesla some time to pay, that goes for legal bills, too … I know it full well.”
Electrek’s Take
It’s quite something for someone to say that a company “doesn’t care about putting another company out of business by not paying what you owe them” and “I’m still a fan” in the same breath.
The excuse of “saving the future of the world” doesn’t make sense if it also happens to “coincidentally” result in Musk becoming extremely wealthy while his contractors go bankrupt.
If that’s the case, the goal is not saving the future; it’s getting rich.
Regarding the claims in the report, Tesla has a reputation for poor payments. That much is clear when its own outside counsel complains about it in the middle of defending Tesla against claims of not paying its bills.
Some of that is simply due to things slipping between the seat cushions. At any given time, Tesla has about $13 billion in accounts payable.
But it seems to be its way of doing business also because over $100 million in liens in Texas alone is concerning and that’s just for Tesla. Musk has employed a similar approach at other companies, including telling Twitter contractors that they will only pay when forced to.
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Sam Altman, CEO of OpenAI attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., on July 8, 2025.
David A. Grogan | CNBC
OpenAI has secured $8.3 billion in new capital as part of its $40 billion fundraise, according to a person familiar with the transaction.
The fresh capital comes as the artificial intelligence company’s business accelerates.
Annual recurring revenue jumped to $13 billion, up from $10 billion in June, said the person, who spoke on condition of anonymity to discuss confidential financial information, and is projected to top $20 billion by year-end.
Paid business users of ChatGPT have climbed to five million from three million just months ago, they said. The round was completed ahead of schedule and was five times oversubscribed.
DealBook was first to report the transaction.
The raise underscores surging investor appetite for AI platforms as competition intensifies among leading model makers.
Dragoneer Investment Group contributed $2.8 billion to the round, the person said, joining Blackstone, TPG, T. Rowe Price, Fidelity, Founders Fund, Sequoia, Andreessen Horowitz, Coatue, Altimeter, D1 Capital, Tiger Global, and Thrive Capital.
While Dragoneer was the largest investor in this latest tranche of funding, SoftBank remains the lead backer of the broader $40 billion fundraising effort.
Rivals are also raising massive sums.
Anthropic, one of OpenAI’s chief competitors, is in talks to secure between $3 billion and $5 billion in new funding led by Iconiq Capital at a potential $170 billion valuation, CNBC confirmed. That follows a $3.5 billion round in March that valued the startup at $61.5 billion.
Both OpenAI and Anthropic are courting Middle Eastern capital to finance their ambitions.
Anthropic CEO Dario Amodei recently signaled a willingness to reverse his previous stance against Gulf sovereign wealth funds, warning in a leaked memo shared with Wired that it’s become “substantially harder to stay on the frontier” of AI development without tapping that money.
OpenAI, meanwhile, is working with Emirati firm G42 to build a massive data center in Abu Dhabi.
WATCH: Anthropic to be valued at $170B in Iconiq-led funding
Hyundai set another US sales record after sales surged 15% in July. The new IONIQ 5 had its best sales month ever as Hyundai’s EV plans begin to unfold.
Hyundai IONIQ 5 sets new US sales record in July 2025
Hyundai sold 79,543 vehicles in the US last month, up 15% from the same period last year. It was also the Korean automaker’s best July sales month since launching its first vehicle in 1986.
The growth was mainly driven by electrified vehicles, including EVs and hybrids (HEVs). Hyundai said that electrified vehicle sales “reached new heights,” after climbing 50% compared to July 2024.
Electrified vehicles accounted for nearly a third (32%) of Hyundai’s retail sales in July 2025, with several popular nameplates setting new all-time monthly sales records, including the new IONIQ 5.
Hyundai IONIQ 5 sales surged 71% in July with 5,818 units sold. Through the first seven months of 2025, Hyundai has now sold nearly 25,000 IONIQ 5 models in the US. Hyundai’s electric SUV remains one of the top-selling EVs in the US, boasting a long driving range, ultra-fast charging capabilities, advanced technology, and a stylish design.
After upgrading it for the 2025 model year, the IONIQ 5 now features a range of up to 318 miles, an upgraded infotainment system, and a built-in NACS port, allowing you to charge at Tesla Superchargers.
The 2025 IONIQ 5 is built at Hyundai’s EV plant in Georgia, alongside the new three-row IONIQ 9. After deliveries kicked off in late May, Hyundai has sold a total of 2,086 IONIQ 9 models in the US, including 1,073 units in July.
Ahead of the upgraded model, IONIQ 6 sales picked up with 949 units sold last month (+22% YOY). Through July, Hyundai sold 7,271 IONIQ 6 models in the US, representing a 5% decrease from the same period last year.
Since both the IONIQ 5 and IONIQ 9 are built in Georgia, they still qualify for the $7,500 federal EV tax credit. However, that’s set to expire at the end of September.
Although it will still face billions in extra costs due to tariffs, Hyundai called the new trade agreement between the US and South Korea a “historic win.” Hyundai avoided a 25% tariff, but still faces a 15% rate.
| 2025 Hyundai IONIQ 5 Trim | EV Powertrain | Driving Range (miles) | Starting Price* | Monthly lease price July 2025 |
| IONIQ 5 SE RWD Standard Range | 168-horsepower rear motor | 245 | $42,500 | $179 |
| IONIQ 5 SE RWD | 225-horsepower rear motor | 318 | $46,550 | $199 |
| IONIQ 5 SEL RWD | 225-horsepower rear motor | 318 | $49,500 | $209 |
| IONIQ 5 Limited RWD | 225-horsepower rear motor | 318 | $54,200 | $309 |
| IONIQ 5 SE Dual Motor AWD | 320-horsepower dual motor | 290 | $50,050 | $249 |
| IONIQ 5 SEL Dual Motor AWD | 320-horsepower dual motor | 290 | $53,000 | $259 |
| IONIQ 5 XRT Dual Motor AWD | 320 horsepower dual motor | 259 | $55,400 | $359 |
| IONIQ 5 Limited Dual Motor AWD | 320-horsepower dual motor | 269 | $58,100 | $299 |
Hyundai is currently offering some of the best deals on EVs to take advantage of the available incentives. After cutting lease prices again last month, the 2025 IONIQ 5 is now available to lease for as low as $179 per month. The three-row IONIQ 9 is listed for lease at just $419 per month.
Hyundai is also offering a complimentary ChargePoint L2 home EV charger with the purchase or lease of a new 2025 IONIQ 5 or 2026 IONIQ 9.
Want to test one out for yourself? We’re here to help you get started. You can use our links below to find deals on Hyundai’s electric vehicles in your area.
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