Hyliion Holdings is pausing orders of its Hypertruck ERX heavy-duty natural gas-electric powertrain as part of a strategic review.

“Hyliion, like others, has experienced slower-than-anticipated market adoption as fleets undertake a gradual transition to electric trucks,” the company said in a statement Tuesday ahead of a conference call scheduled for Wednesday.

The company’s stock (NYSE: HYLN) shares fell to 65 cents, down 45.3% in early trading Wednesday. During the height of the special purpose acquisition company frenzy, shares traded above $55.

“Hyliion’s ongoing participation in commercial vehicle electrification will require continued investment, while addressing escalating component and production costs, meeting ongoing regulatory requirements, and aligning with a new CARB mandate for fleet adoption of electric trucks,” the statement said.

The Austin, Texas-based company recently received California Air Resource Board certification of the Cummins 12-liter natural gas engine in the Hypertruck. However, the approval is good only for the 2024 model year. Cummins is phasing out the 12-liter in coming years. A new, more powerful 15-liter natural gas engine replaces the 12-liter. It is getting strong fleet interest. The company will complete 30 trucks planned for customer deliveries in early 2024.

CEO Thomas Healy told FreightWaves in September that Hyliion would pursue certifying the Cummins’ 15-liter engine with CARB. But that is now apparently part of the strategic review.

‘Right time to consider a host of strategic options’

“We believe now is the right time to consider a host of strategic options for our electric powertrain business to ensure that we deploy capital most effectively and maximize value for our shareholders,” Healy said in the statement.

Hyliion could be put up for sale. But it is unclear who might buy it given that its only product to date is a low-volume bolt-on electric generator for diesel and natural gas trucks. Supply chain constraints delayed the ERX by a year. Its costs continue to rise because volume projections are low. That makes the costs of components more expensive.

“While Hyliion’s capital position is currently strong, its proprietary technology is transformative, and commercialization is progressing on track, additional future capital will ultimately need to be raised against the backdrop of uncertain market conditions if we continue on our current trajectory,” Healy said. 

Hyliion a year ago purchased generator technology from General Electric that it plans to use for stationary applications.

This is a developing story.