Why Nikola Stock Dropped Tuesday -- Though Maybe It Shouldn't Have

Shares of electric vehicle start-up Nikola (NASDAQ: NKLA) dropped in market action Tuesday morning. But the source of the drop could arguably be considered excellent news for the company and its plans. As of 11:50 a.m. EDT, Nikola shares were down 7.6%.

There are two pieces of news today that are related to the use of hydrogen in transportation, which Nikola is counting on for its long-term success. First, in what could be potentially considered direct competition for Nikola, the Jaguar Land Rover automotive brand announced it is developing a hydrogen fuel cell electric vehicle (FCEV) based on its new Land Rover Defender sport utility vehicle. Separately, General Motors and rail transportation leader Westinghouse Air Brake Technologies (Wabtec) announced a partnership to develop and commercialize hydrogen powered locomotives using GM's HYDROTEC hydrogen fuel cell systems.

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Source Fool.com