Why FuelCell Energy, Bloom Energy, and Plug Power stocks soared today
Fuel cell stocks were higher today, with Plug-in power supply (NASDAQ: PLUG), Flower energy (NYSE: BE), and Fuel cell energy (NASDAQ: FCEL) up 3.2%, 5.6% and 11.4% at 1:00 p.m. EDT.
As more automakers invest in hydrogen fuel cell technology, investors in fuel cell stocks have become increasingly optimistic about the outlook.
A Reuters report this morning revealed how some of the auto giants from around the world are looking beyond battery electric vehicles and investing in hydrogen, which seems to be sparking interest in hydrogen fuel cell stocks.
According to Reuters, BMW (OTC: BMWYY)(OTC: BAMXF)(OTC: BAMXF) plans a hydrogen model for the mass market by 2030 and has built a hydrogen car prototype based on its SUV X5. BMW Vice President Jürgen Guldner also said the company plans to build a “test fleet” of nearly 100 cars by 2022.
Likewise, Volkswagen‘S (OTC: VWAGY) The Audi brand told Reuters that it has already built a few prototypes and put together a team of more than 100 people to research hydrogen fuel cell technology for the entire Volkswagen Group.
This update from Volkswagen in particular caught my attention when Volkswagen’s CEO Herbert Diess publicly dismissed the idea of hydrogen cars a few months ago when he tweeted that science does not support the use of hydrogen in cars.
It is time for politics to accept science: green hydrogen is needed for steel, chemistry, aviation, etc. and should not end up in cars. Far too expensive, inefficient, slow and difficult to introduce and transport. After all: no #Hydrogen Cars in sight.
– Herbert Diess (@Herbert_Diess) February 11, 2021
It seems that Volkswagen no longer wants to be left out of the hydrogen game, now that more players are stepping on the gas. Just at the beginning of this month Hyundai Motor Group (OTC: HYMTF) announced ambitious hydrogen plans, including electrifying all of its commercial vehicles with hydrogen fuel cells by 2028 and testing the technology’s use in drones and supercars.
These new updates from BMW and Volkswagen are clear evidence that interest in hydrogen fuel cell technology has now expanded well beyond trucks to include automobiles, and the news is evidence of the technology’s viability in securing a greener future. It is important that more research and investment in industry over time reduce costs and make fuel cell technology even more attractive. This is what investors want to see in leading fuel cell stocks like Plug Power, Bloom Energy and FuelCell Energy, even as these companies continue to expand. Plug Power, for example, has just announced the construction of the largest hydrogen plant on the west coast.
Despite all the attention paid to fuel cells, these fuel cell stocks have been insanely volatile for the last year or so. This is because those growth stocks didn’t deliver the results they expected until recently, when both Plug Power and Bloom Energy reported record numbers in their respective second quarters, and FuelCell Energy surprised the market last week with unexpectedly strong Q3 sales growth. If these companies can grow just as fast, news of further hydrogen industry investments like the one we heard today would be a perfect booster for these fuel cell stocks.
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