Shares of Nikola (NASDAQ:NKLA) up more than 15% on Thursday morning. The share was boosted by company-specific news and new publicity for hydrogen as a transportation fuel.

As of 11:10 a.m. ET today, Nikola shares remained up 10.6%. That helped push the share price above the $1 level that is important for maintaining a stock market listing.

Hydrogen and the Olympic Games

Yesterday, Nikola announced plans to build a new hydrogen filling station for its energy brand HYLA in Western Canada. The new station will be the province of Alberta’s first commercial hydrogen fueling station and the first in what Nikola and its partners plan to be a refueling network to support the use of hydrogen-powered heavy-duty trucks.

That follows an announcement last week to mark the opening of the company’s first HYLA gas station in Southern California. It went into service last month and can fuel up to 40 Nikola hydrogen fuel cell-electric trucks daily. The company plans to have a total of fourteen gas stations operational by the end of the year.

The stations provide a necessary infrastructure to support sales growth of Nikola’s Class 8 hydrogen trucks. But investors today might be more responsive to news from the commercial gas company Liquid air will demonstrate hydrogen filling stations during the Olympic Games in Paris this summer. As an official proponent of hydrogen fuel, the company is highlighting a network of stations that can fill 500 hydrogen cars during the Olympics.

Investors likely see that support as a sign of legitimacy for Nikola and its plans to increase the use of its hydrogen trucks in North America. The company and its shareholders are certainly pleased with the high-profile use of hydrogen that Air Liquide announced today.

Should You Invest $1,000 in Nikola Now?

Before you buy shares in Nikola, consider the following:

The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Nikola wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates and two new stock picks per month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.

View the 10 stocks

*Stock Advisor returns March 25, 2024

Howard Smith has positions at Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Nikola Stock Soared Today was originally published by The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *