What’s going on with NKLA?
Nikola Corp. (NKLA) stock is lower after the electric vehicle company announced that it intends to collaborate with manufacturer IVECO and natural gas supplier OGE to create German infrastructure to deliver hydrogen for fuel-cell electric vehicles. NKLA shares were trading down 0.83% to $11.95 per share, while IVECO's owner CNH Industrial's (CNHI) stock increased 1.02% to $15.85 per share Wednesday afternoon.
What does this mean for NKLA?
By signing a letter of intent with IVECO and OGE, NKLA is committing to develop a business structure for hydrogen-fueled EVs in Germany. IVECO is a subsidiary of CNH Industrial, which manufacturers vehicles powered by alternative fuels, while OGE owns and operates a natural gas pipeline infrastructure network in the country.
The companies said in a press release that they are seeking to develop a “hydrogen economy.” The companies plan to grow the hydrogen economy by implementing vital refueling and distribution infrastructures to efficiently deliver hydrogen to commercial truck owners. This move is similar to Tesla's investment in a network of supercharger stations, which makes the company's cars more attractive as potential buyers know they have an away-from-home charging option.
"Nikola is committed to delivering and advancing industry-leading hydrogen production, distribution and supply," Nikola's President of Energy and Commercial Pablo Koziner, said in a press release. "We believe this collaboration, in particular, presents a very compelling long-term fueling distribution solution that we expect to advance industry and overall market adoption of FCEV technologies."
NKLA has a Fundamental Rank of 99. Find out what this means to you and get the rest of the rankings on NKLA!
Nikola Corp is a designer and manufacturer of battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure.
