Nikola stock has rallied sharply in recent weeks after a slow start to the year. The EV stock gained 39.8% in March, according to S&P Global Market Intelligence.
Nikola is developing and shipping hydrogen fuel cell big trucks after recalling its BEVs last year, giving investors a chance to buy the slowing stock.
Nikola is restoring order. Nikola stock moved the most late last month. EV maker welcomed the opening of its first hydrogen refueling station in Southern California. The Ontario Hyla station can feed 40 Nikola hydrogen fuel-cell electric Class 8 trucks daily. Nikola and several partners presented Alberta's first commercial refueling station in March.
Nikola hopes to open nine new refueling stations by mid-2024 and 14 by year's end. Nikola anticipates truck sales to climb in the next quarters as more Hyla hydrogen fuelling stations open.
In Q4, Nikola delivered all 35 hydrogen fuel-cell trucks in its inventory. The company announced earlier this month that it had constructed 43 hydrogen fuel-cell Class 8 semitrucks and delivered 40 to wholesalers in the first quarter, with the remaining three scheduled for early April.
Nikola plans to increase hydrogen truck manufacturing and sales after abandoning BEVs. Nikola voluntarily recalled 209 BEVs last August due to faulty battery packs and promised replacements. Reworked BEVs with new battery packs are currently being returned to consumers. That implies the vehicle recall and its costs, which overhung EV stock, are over. This is also why investors are bidding up the stock.
Can Nikola stock rise further? Nikola's fuel-cell truck is on the road, and the business is extending its fueling infrastructure to match deliveries, boosting interest in the struggling EV stock
Now that Nikola has started making hydrogen fuel-cell trucks, investors expect revenue to grow steadily and losses to shrink, but the EV sector is slowing and it may be too early to expect much. The company also burns cash quickly and issues stock to raise capital, something investors don't like. After its recent surge, Nikola stock needs strong catalysts to keep momentum. Its first-quarter results are due May 7.
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