Shares of Nikola (NASDAQ: NKLA) soared by more than 15% Thursday morning. The stock got a boost from some company-specific news as well as fresh publicity for hydrogen as a transportation fuel.
As of 11:10 a.m. ET today, Nikola stock remained higher by 10.6%. That helped the share price exceed the $1 level that is important for maintaining a stock exchange listing.
Hydrogen and the Olympics
Yesterday, Nikola announced plans for a new hydrogen fueling station from its HYLA energy brand to be built in Western Canada. The new station will be the Province of Alberta’s first commercial hydrogen fueling station and the first in what Nikola and its partners plan to be a fueling network to support the use of hydrogen-fueled heavy trucks.
That follows an announcement last week marking the opening of the company’s first HYLA refueling station in Southern California. It began operating last month with the ability to fuel up to 40 Nikola hydrogen fuel-cell electric trucks daily. The company plans to have a total of 14 refueling stations in operation by the end of the year.
The stations are necessary infrastructure to support growth in sales of Nikola’s hydrogen-fueled Class 8 trucks. But investors today might be reacting more to news that commercial gas company Air Liquide will be showcasing hydrogen fueling stations at the Paris Olympics this summer. As the official supporter for hydrogen fuel, the company is highlighting a network of stations able to fill 500 hydrogen-powered cars at the Olympic Games.
Investors likely see that support as a sign of legitimacy for Nikola and its plans to grow the use of its hydrogen trucks in North America. The company and its shareholders surely welcome the high-profile use of hydrogen announced by Air Liquide today.
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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.
Why Nikola Stock Soared Today was originally published by The Motley Fool