The hammer fell on Nov. 30, 2020. General Motors will not buy into Nikola. But according to the new memorandum of understanding, GM still wants to work with Nikola on battery and fuel cell technology. Consequently, the Badger pickup truck will not emerge from GM’s assembly line as planned. And the originally projected USD 2 billion investment is also rendered moot. As a result, Nikola stock plummeted.
Fuel cell and hydrogen stocks are riding a wave of popularity as a new megatrend sweeps the market. So far, every single one of these stocks has exceeded expectations. But how long will the love affair between investors and the industry last? Will analysts and shareholders use new methods to evaluate business models, prospects, backlogs, submarkets and revenues, and, above all, the potential for profit? And will the market separate the wheat from the chaff? I’d say yes, that will definitely happen.
A temporary jump in Nikola’s market cap to over USD 25 billion and a stock price topping USD 70 – on one day, even USD 90 – were quite the start. And yet, I stayed on the sidelines, which turned out to be the right thing to do.
This March, the German gas and water industries association DVGW published the findings of a study called “Hydrogen electric vehicles – trends and outlook,” which the organization had commissioned to evaluate the prospects for hydrogen in the transportation sector.
Two years ago, the interest of German truck manufacturers and freight forwarders in fuel cells was extremely low. It’s different today. Almost all logistics companies are now in some way concerned with the question of what fuel their vehicles will be powered by in the future.
The hydrogen and fuel cell units deployed in heavy-duty applications have been mostly test systems for onboard energy supply. Even those systems are far from being finished products. The shared opinion among research and development laboratories is that the technologies could be used to power cars and trucks, but only up to a certain weight or load.