Why Nikola Stock Moved Higher Wednesday
Electric vehicle start-up Nikola (NASDAQ: NKLA) has taken criticism over the last year for being all talk and hype, without hard evidence that its plans will pan out. Today, investors are giving the company credit after it announced an investment to help move its hydrogen fuel ambitions forward. Nikola shares were 8% higher early in Wednesday's session before paring those gains to 5% as of 10:45 a.m. EDT.
Yesterday, Nikola announced it is investing $50 million in Wabash Valley Resources, a clean hydrogen project under development in the Midwest. Nikola will gain a 20% equity interest in the Terre Haute, Indiana, project paid for with cash and stock. Once completed, the facility will produce hydrogen for transportation fuel, and will generate electricity using solid waste byproducts from oil refining and biomass fuel. The process will capture CO2 emissions making it a clean fuel generating process. Nikola plans to use the hydrogen fuel to support commercial trucking using its hydrogen fuel cell electric vehicles (FCEVs) in the region.
Source Fool.com
