NKLA stock:What goes up must come down? – Idaho Reporter

NKLA stock news

NKLA stock:What goes up must come down?

Nikola Corp. (NASDAQ:NKLA) stock gained almost 20% on Tuesday but then lost more than 7% during after hours trading session. What is behind all this commotion?

The ailing start-up Nikola made positive headlines again on Tuesday. The share increased by around 20 percent, in the mid-day it was up even almost 30 percent. The cooperation partner General Motors is responsible for the course jump. The speculation of a big deal is fueled.

General Motors announced that it no longer supports the Trump administration’s efforts to combat emissions regulations in California.

“We are confident that the Biden government, California and the US auto industry (…) can work together to find a path that leads to a fully electric future,” said GM CEO Mary Barra, according to the Wall Street Journal .

Another thing fueling the imagination of NKLA stockholders might be connected with the latest news from Clean Power Capital. The investment company from Vancouver has increased its market value by more than 200 percent since the beginning of the month – and could also help Nikola achieve a breakthrough.

Hydrogen production directly at the filling station

The reason for the rapid increase in Clean Power Capital (CNX:MOVE) stock is that the holding company acquired a 90 percent stake in the Californian startup Powertap at the end of October. What does that have to do with Nikola? Powertap has patented a technology with which hydrogen can be obtained directly at hydrogen filling stations, according to the report. With this, the startup wants to build a supply network in North America where trucks, for example, can refuel more cheaply than at filling stations where the hydrogen has to be delivered. The only drawback: The petrol station operator has not yet operated any petrol stations. The first is to go into operation in 2021, as a prototype.

But Nikola investors are familiar with such a scenario: The US company is also particularly big in announcements. Not a single fuel cell truck has yet made it onto the road. After all, according to a notification dated November 9th, the first of a total of five Nikola Tre BEV prototypes was fully assembled in the IVECO plant in Ulm. The first tests with the all-electric truck are to follow in the first quarter of 2021. On the other hand, when the first hydrogen-powered fuel cell truck will hit the market remains to be seen. But time is obviously not of the essence, the suitable petrol stations aren’t ready either.

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