Electric heavy truck maker Nikola (NASDAQ: NKLA) pivoted last year to focus on hydrogen-fuel-cell electric vehicles (FCEVs). While the company still plans to produce battery electric heavy trucks for customer orders, its future really depends on the growth of the hydrogen powered trucks.
Today, Nikola stock jumped by as much as nearly 16% on news that it produced 43 of the Class 8 FCEVs and sold 40 of them to wholesalers destined for end customers in the first quarter. Those deliveries were on top of the 35 trucks shipped in the fourth quarter of 2023 in its first quarterly production period.
Hydrogen fuel infrastructure
Last year, Nikola started its HYLA brand for hydrogen fuel infrastructure to support FCEV customers. That includes agreements with hydrogen producers as well as refueling stations and mobile refuelers for its Class 8 trucks.
At the same time as it works to expand its hydrogen truck network, the company has had to rework the original battery electric trucks it sold after recalling the fleet due to a battery pack fire safety issue. The company said it is on track to return all of those recalled trucks with new battery packs from a different supplier by early in the third quarter.
That recall came at a bad time for the company, and investors sold the stock in droves as a result last year. But with progress being made to repair that issue, and hydrogen truck production and sales ramping up, Nikola stock has had somewhat of a recovery recently.
The stock has been particularly strong over the last few weeks. That could be because the distraction of the recall will soon be in its rearview mirror. But Nikola stock is still a very speculative bet. The big question will be how big a market it can create for FCEVs.
Today’s news alone isn’t a reason to jump in and buy Nikola shares. But those who want to speculate on a boost in hydrogen-fueled transportation may be pleased to see that Nikola has been making steady progress.
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Howard Smith has positions in Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Is Nikola Stock a Buy After Today’s News? was originally published by The Motley Fool
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