Hydrogen fuel cell deals send Nikola stock skywardJuly 19, 2023
The company’s stock prices shot upward upon the announcement of two major H2 deals.
Nikola’s stock experienced a sharp increase following the announcement that the hydrogen fuel cell electric truck company has entered into two major deals for its vehicles.
The first occurred between BayoTech and Nikola’s HYLA division for distributing H2.
Of the two large hydrogen fuel cell deals, the first was with BayoTech, a small-scale H2 producer. That deal was with Nikola’s HYLA division, which provides H2 distribution and dispensing for commercial trucking applications. The deal with BayoTech involves an agreement in which that company will be buying as many as 50 Nikola Class 8 fuel cell trucks over the next half decade. The first twelve of those vehicles are scheduled to be delivered this year and next year. According to Nikola, those hydrogen fuel cell vehicles boast a range as high as 500 miles.
By having HYLA and BayoTech work together, it will also bring Nikola to acquire as many as 10 of BayoTech’s HyFill H2 transport trailers, which will be necessary for the distribution of high-pressure H2 from production facilities to refueling stations.
The second is a deal between Nikola and Bosch for the design and production of hydrogen fuel cell trucks.
On Bosch’s Tech Day 2023, the company announced that it would be starting production of its fuel cell power modules and that Nikola would be the pilot customer. Those units will be incorporated into the Nikola Tre Class 8 truck, which will be starting deliveries to customers for the first time in North America in this year’s third quarter.
“Bosch is one of the very few companies that are capable of mass-producing technology as complex as fuel-cell stacks. We don’t just have the required systems expertise, but also the capability of quickly scaling up new developments to mass production,” said Bosch board member Markus Heyn, who is also the chair of Bosch Mobility.
Shares trending upward
Upon the announcement of these two new deals, Nikola’s shares initially traded upward by almost 60 percent.
Earlier this year in a media interview, Michael Lohscheller, CEO of Nikola, said that the company expected to produce “between 375 and 500” trucks in 2023 and that the company intended to temporarily place its Coolidge, Arizona plant production on pause to modify its assembly line to suit both hydrogen fuel cell and battery electric vehicle assembly.
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