By Nikola, the electric heavy-duty truck manufacturer (ticker: NKLA), has made an exciting announcement that has sent its stock soaring. BayoTech, a hydrogen gas producer, has revealed plans to purchase up to 50 Nikola hydrogen fuel cell electric vehicles for the transportation of hydrogen gas.
Nikola CEO Michael Lohscheller expressed his enthusiasm about the partnership, stating, “Nikola and BayoTech are united by a common goal of providing reliable access to hydrogen throughout the United States. BayoTech’s low-carbon hydrogen fuel and transport equipment will play an important part in supporting the adoption of Nikola’s fuel cell electric zero-emission trucks.”
This news is highly beneficial for both the demand for Nikola trucks and the development of hydrogen gas infrastructure to power them. Investors have responded with great excitement, causing share prices to surge by 34% to $1.84. Contrastingly, the S&P 500 and Nasdaq Composite have experienced more modest gains of 0.6% and 1.2%, respectively.
This significant one-day increase in Nikola stock may bring investors back to the lucrative time of mid-2020 when shares doubled in value on June 8. This surge coincided with Nikola’s merger with a special purpose acquisition company, which not only infused $700 million into the company but also transformed it into a publicly traded entity.
To put things into perspective, Nikola stock closed that momentous day at an impressive $73.27 per share—far surpassing its current value of below $2 per share. However, the road has become more challenging for electric-vehicle start-ups since then due to higher interest rates and the need for additional capital. It is estimated that Nikola will require over $1.1 billion to continue building its business between now and the end of 2025, while the company currently holds approximately $200 million.
Investing in Nikola is a bet on the future of sustainable transportation and the potential of hydrogen fuel cells. With BayoTech’s support, Nikola is transforming the industry and making strides towards a greener future.
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