Nikola Corporation (NASDAQ: NKLA) is making moves in the electric truck world, and this time, it’s all about hydrogen. The company recently delivered 88 Class 8 hydrogen fuel cell trucks in the third quarter, which marks a 22% increase from the previous quarter. Even though it didn’t match the massive 80% surge it saw at the beginning of the year, Nikola is right on track. Investors have taken note of this, resulting in the company’s stock jumping by 9.5% after the announcement.
But before we get too excited, let’s keep in mind that Nikola’s stock has had a rough year. It’s down more than 82% so far. A big reason for this is the overall slowdown in the electric vehicle (EV) industry, with consumer demand softening across the board. That said, the jump in truck deliveries shows there’s still a solid market for Nikola’s hydrogen-powered rigs, which are proving to be hits with customers.
The Phoenix-based electric vehicle (EV) manufacturer’s shift to hydrogen-powered trucks is no accident. The company faced some major setbacks with its battery-electric trucks, including a massive recall in 2023 after fires caused by coolant leaks. For this reason, the company, whose mission is focused on zero-emissions transportation, decided to double down on hydrogen fuel cells, which have quickly become its star product.
It’s not hard to see why. Hydrogen fuel cells offer a few big advantages over battery-electric trucks, especially for long-haul freight. They can refuel much faster, and they provide more range, making them a strong contender for companies looking to ditch diesel. This shift in focus is helping Nikola rebuild trust after the battery-electric fiasco and keep its customers happy.
At the moment, the company has delivered 200 hydrogen trucks so far this year, with a goal of hitting 300 to 350 by year’s end. It’s not just a one-off, either — since launching its hydrogen trucks in the fourth quarter of 2023, Nikola has sold a total of 235 units. Clearly, this isn’t a fluke; customers like what they see.
The transition from battery-electric to hydrogen is a strategic move that is helping Nikola stay in the game. The hydrogen trucks are bringing in new customers and orders, giving the company a chance to prove that its technology can work on a larger scale.
While Nikola’s stock has plummeted this year, it’s not all bad news. Less than two months ago, the company surprised everyone by beating Wall Street’s revenue estimates for the second quarter. Even better, Nikola posted a smaller-than-expected loss. This isn’t so bad for a company that has experienced a lot.
In the coming months, it will be interesting to see if Nikola can maintain this momentum. For now, howeer, it looks like the company is starting to turn things around by focusing on hydrogen-powered vehicles.
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