Nikola inventory has surged in recent weeks. Can it maintain going?
Electric heavy truck maker Nikola (NKLA 6.47%) pivoted final 12 months to give attention to hydrogen-fuel-cell electrical automobiles (FCEVs). While the corporate nonetheless plans to supply battery electrical heavy vans for buyer orders, its future actually relies on the expansion of the hydrogen powered vans.
Today, Nikola inventory jumped by as a lot as almost 16% on information that it produced 43 of the Class 8 FCEVs and offered 40 of them to wholesalers destined for finish clients within the first quarter. Those deliveries had been on prime of the 35 vans shipped within the fourth quarter of 2023 in its first quarterly manufacturing interval.
Hydrogen gasoline infrastructure
Last 12 months, Nikola began its HYLA model for hydrogen gasoline infrastructure to assist FCEV clients. That consists of agreements with hydrogen producers in addition to refueling stations and cellular refuelers for its Class 8 vans.
At the identical time as it really works to increase its hydrogen truck community, the corporate has needed to rework the unique battery electrical vans it offered after recalling the fleet on account of a battery pack fireplace security situation. The firm mentioned it’s on monitor to return all of these recalled vans with new battery packs from a special provider by early within the third quarter.
That recall got here at a foul time for the corporate, and traders offered the inventory in droves in consequence final 12 months. But with progress being made to restore that situation, and hydrogen truck manufacturing and gross sales ramping up, Nikola inventory has had considerably of a restoration lately.
The inventory has been significantly robust over the previous couple of weeks. That may very well be as a result of the distraction of the recall will quickly be in its rearview mirror. But Nikola inventory continues to be a really speculative guess. The large query can be how large a market it will possibly create for FCEVs.
Today’s information alone is not a motive to leap in and purchase Nikola shares. But those that wish to speculate on a lift in hydrogen-fueled transportation could also be happy to see that Nikola has been making regular progress.
