Why Nikola Stock Just Popped

Bosch is on board to develop gas cell tech to Nikola.

What came about

Shares of Nikola (NASDAQ:NKLA) jumped 2% in 1 p.m. EDT Trading Thursday after the battery and gas cell-powered semi truck manufacturer announced it has signed “strategic agreements” with Germany’s Bosch Neighborhood to develop gas cells for its vans.

So what

As detailed in Nikola’s press liberate, Bosch will license to Nikola the aged’s gas cell module know-how, and provide “key parts … including the gas-cell stack, air compressor with vitality electronics and regulate unit with sensors.” Nikola will then steal these parts and assemble them into gas cell modules at Nikola’s manufacturing facility in Coolidge, Arizona, where this will even be manufacturing its possess “Tre” gas cell-powered electric vans.  

Financial phrases of the licensing settlement weren’t disclosed, beyond Nikola’s assertion that the usage of Bosch’s gas cells will give its automobiles “competitive cost … advantages.”

Arrow angles up on a green stock chart.

Image source: Getty Photos.

Now what

Manufacturing of the vans and the gas cells to vitality them will commence in 2023, says Nikola, following the manufacturing and trying out of some “Tre FCEV alpha automobiles the usage of the gas-cell vitality modules” that is expected to commence by the dwell of 2021.

Briefly, it used to be an incrementally optimistic press liberate, however rarely a sport changer. Nikola shares, which on the muse leapt extra than 6% in step with the news, fetch already given up the wide majority of their positive components — and I suspect that is the honest name.

This article represents the concept of the author, who could perchance well also disagree with the “official” recommendation build of a Motley Fool top class advisory provider. We’re motley! Questioning an investing thesis — even one in every of our possess — helps us all judge significantly about investing and dangle decisions that encourage us grow to be smarter, happier, and richer.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>

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