Why Nikola Stock Dropped Today

The firm laid out its hydrogen fuel cell automobile plans at the current time, but the stock is transferring with the field.

Howard Smith

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What occurred

The market goes in opposition to speculative attention-grabbing energy shares at the current time. Shares in battery-electrical and hydrogen fuel cell automobile maker Nikola (NASDAQ:NKLA) are procuring and selling down with the team. As of 1: 40 p.m. EST, shares in Nikola were down 7%. 

The circulation in the field comes on the identical day the firm released small print for its North American fuel cell electrical automobile (FCEV) program. 

So what

On the current time, Nikola released an announcement detailing plans for its FCEV industrial truck program. The firm plans to launch manufacturing at its Arizona facility with the battery-electrical Tre semi truck. Following that birth, plans demand an FCEV model of the Tre, as effectively as the prolonged-vary Nikola Two FCEV Sleeper for the North American market of utilizing ranges between 300 and 900 miles.

Nikola Two FCEV Sleeper

Nikola Two FCEV Sleeper. Image source: Nikola.

Now what

Nikola plans to interrupt its FCEV heavy-truck choices into three categories. Metro/regional automobiles for trips now now not as much as 300 miles, regional for quick fueling or rapid turnaround trips as much as 500 miles, and a prolonged-haul Nikola Two sleeper designed for as much as 900-mile ranges.

Nikola plans to launch manufacturing of its FCEV Tre in 2023, after prototypes are constructed in the 2d quarter of 2021 and attempting out and validation is done thru 2022. The firm says the trucks will leverage the battery-electrical Tre platform “with hydrogen fuel-cell power, while being designed to enhance aerodynamics and cut back total automobile weight.” Manufacturing of the prolonged-haul Two is scheduled to launch in 2024. 

The firm added that both the FCEV Two and Tre “are anticipated to employ a number of in vogue fuel-cell power modules and scalable hydrogen storage programs.” Traders don’t seem to be striking essential stock in at the current time’s update as market sentiment goes in opposition to the field. However the update is value filing away to explore if the firm fits its timeline. 

Howard Smith owns shares of Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>

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