What took put of dwelling
Over the final twelve months, shares of Nikola (NASDAQ:NKLA) were impacted by all the things from a transient-seller describe back to development with its first manufacturing facility. Tuesday, shares dropped greater than 5% earlier than settling down 3.5% as of 1: 45 p.m. EST for what looks to be to be one other reason.
This day’s switch likely stems from an announcement that a competing hydrogen fuel cell-electric automobile (FCEV) maker is merging with a a amount of reason acquisition firm (SPAC) to shuffle public.
Nikola truck at hydrogen fueling put of dwelling. Picture source: Nikola.
This day, Hyzon Motors launched it plans to merge with SPAC Decarbonization Plus Acquisition (NASDAQ:DCRB), which could perchance also conclude up in a mixed firm with an project mark of $2.1 billion. Hyzon is a producer of zero-emissions hydrogen fuel cell powered vehicles, at the side of heavy accountability trucks, buses, and coaches. The firm became before all the things phase of Singapore-based fully fully Horizon Gas Cell Technologies, which is the world’s ideal-volume producer of fuel cells. Hyzon launched in the U.S. in 2019 and delivered about 400 fuel cell powered industrial vehicles in 2019 alone. French vitality monumental Total SE is amongst its investors.
With Nikola buying and selling at an project mark of over $8 billion, and a market capitalization of practically $9 billion, investors could perchance also soon feel that an funding in Hyzon is a bigger mark for their money. If the technology and infrastructure pan out, it could perchance also now now not be an both/or decision. But for on the present time, investors could perchance also very successfully be pulling some investable money from Nikola trying to redeploy it to a brand unusual probability in the sector.
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.”>