Nikola Motor Company hydrogen fuel
Source: Nikola Motor Company
Shares in the competitive electric vehicle manufacturer Nikola surged during Thursday’s early trading after the company reaffirmed production targets and announced a limited collaboration on hydrogen fueling stations Travel centers of America.
The plans include the installation of hydrogen filling stations for heavy trucks in two locations in California for TravelCenters of America, the largest publicly traded company operating full-service travel centers in the United States. The first stages are “a first step for the parties” to explore the mutual development of a nationwide network, “said Nikola.
Nikola shares fluctuated Thursday morning, rising more than 21% after board member Jeffrey Ubben told CNBC the company was “pretty much on target” with its production plans.
Most notably, customer production of the first semi-trailer truck, a battery-electric vehicle called the Nikola Tre, began in Europe in the fourth quarter, followed by a plant in Arizona that opened in 2022 to produce the vehicle.
“We’re checking the boxes,” he said “Squawk on the street.” “There’s a tremendous dynamic here. The team is down here. That’s all I can say.”
Nikola stock was trading at $ 12.20 per share at 10:55 a.m., an increase of around 18%. The stocks, which once traded as high as $ 93.99, fell below $ 10 for the first time since the company started the week went public through a reverse merger with a special purpose vehicle or SPAC in June. Nikola, who was briefly rated higher than Ford engine last year now has a market value of less than $ 4 billion.
The collaboration between Nikola and TravelCenters of America is subject to negotiation and execution of a definitive contract that the two companies have agreed, according to a press release.
“The key here is really to have this integrated solution,” said Ubben. “The hydrogen filling stations and the fuel cell car.”
Hydrogen fuel cell electric vehicles are seen as a long-term solution for the trucking industry trying to move away from diesel-powered trucks. they work similar to battery electric vehicles However, they run on electricity from hydrogen and oxygen instead of just batteries.
FCEVs are also faster to refuel than battery electric vehicles, which the automotive and trucking industries are studying for shorter trips as well. But they also have many of the same hurdles, such as higher costs and charging / refueling infrastructure.
In a separate vote of confidence in hydrogen fuel cell technology, global automotive supplier Bosch announced plans on Thursday to invest 1 billion euros in the technology by 2024. The Germany-based company expects the hydrogen market in Europe to be worth almost 40 billion euros (48.2 billion US dollars) by 2030 – with annual growth rates of 65%.