Why Nikola Stock Reversed Course Today

Hydrogen gasoline cell electric vehicles are gaining attention. That’s each and every suitable and coarse for Nikola.

Howard Smith

Key Points

  • But every other Investment in the hydrogen-powered vehicle arena used to be launched right this moment time.

What took place

Shares of electric commercial truck begin-up Nikola (NASDAQ:NKLA) had been bouncing spherical this week. After leaping Tuesday, the stock reversed direction right this moment time. Shares had been shopping and selling down 6.5% as of 2: 20 p.m. EDT. 

So what

The volatility comes because the knowing that of hydrogen gasoline cell electric vehicles is getting more press. The day before at present, an announcement from Korean automaker Hyundai on the matter used to be broadly reported by CNBC. Nikola has been developing each and every battery electric and hydrogen gasoline cell electric semitrucks and plans to have its first one commercially on hand by the stop of the one year.

Nikola Tre battery electric truck in front of concrete structure.

Image source: Nikola.

Stories that a significant automaker plans to have all of its vehicle items on hand with hydrogen gasoline cell vitality by 2028 doubtlessly helps to toughen Nikola’s commercial approach. Nonetheless it moreover brings competition that can also show why shares reversed direction right this moment time, giving up the total day previous’s beneficial properties and more. 

Now what

Hyundai moreover collaborates with Canada-based fully mostly Hydrogen Abilities & Energy Corporation, which used to be moreover in the news right this moment time regarding hydrogen gasoline cell electric vehicles. HTEC launched a $170 million Investment that can merit it “to procedure new low-carbon hydrogen projects and to broaden its network of stations supporting vehicles and heavy vehicles.”

The Investment by industrial gas and technology instruments firm Chart Industries (NYSE:GTLS) grows Chart’s stake in HTEC to 25% possession. The deal moreover offers Chart preferential rights to broaden possession ought to 1 other investing partner judge to sell its stake in due direction.

As talked about, the expanding enhance of the hydrogen economy would be seen as each and every sure and negative for Nikola. Winners and losers must not filtered out till mighty extra into the existence cycle. For right this moment time, it seems more investors are taking beneath consideration rising competition is a safe negative for Nikola’s future potential.

This article represents the knowing of the author, who also can disagree with the “reliable” recommendation station of a Motley Fool top price advisory carrier. We’re motley! Questioning an investing thesis — even one of our bear — helps us all judge critically about investing and procedure decisions that merit us turn out to be smarter, happier, and richer.

Howard Smith owns shares of Nikola Corporation. The Motley Fool owns shares of and recommends Chart Industries. The Motley Fool has a disclosure policy.”>

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