Shares in Nikola (NASDAQ:NKLA) were up as much as 10% today, and remained 9% above Wednesday's closing price as of 2 p.m. EST.
Many names in the renewable energy sector jumped yesterday after the Democrats took effective control of the Senate, but Nikola stock didn't really participate, with just a 1% gain.
Much of Nikola's promise lies in the build-out of a hydrogen fueling infrastructure. President-elect Biden has been outspoken in his support of renewable energy, and yesterday's Democratic sweep of the two Georgia Senate seats now gives that agenda more likelihood of success.
Nikola plans to make both battery electric and hydrogen fuel cell vehicles. Both technologies will require a large increase in charging and refueling infrastructure to approach going mainstream. With Democrats controlling the White House and Congress for at least the next two years, investors hope the federal government will support that effort.
Nikola also released an announcement today showing progress on the construction of its Arizona factory. The company said it has entered into a master utility agreement for the factory with Global Water Resources (NASDAQ:GWRS).
Global Water Resources will supply water and wastewater services to the new factory in Coolidge, Arizona. With Nikola's reputation still in question, even a simple agreement that implies solid progress on its manufacturing plant is good news for investors. More important news will be seeing the company's products and a path for the coinciding infrastructure.