What happened
The stocks of some electric vehicle makers reversed recent declines on Friday with sharp jumps. Shares of hydrogen fuel cell electric truck makers Nikola (NKLA +0.00%) and Hyzon Motors (HYZN +0.00%) were up between 8% and 11% at the highs of the day today. But shares of embattled electric pickup truck start-up Lordstown Motors (RIDE +0.00%) bounced sharply off all-time lows and were 16% higher at their peak. As of 2:40 p.m. EDT the shares had pared some gains, trading as follows:
- Nikola up 4.2%
- Hyzon up 6.5%
- Lordstown up 11.8%
So what
Lordstown shares dropped below $5 per share yesterday for the first time. The company has been under fire for misrepresenting the details surrounding the progress in launching its Endurance pickup truck, and has admitted it needed additional funding to continue to operate. It held its annual shareholder meeting yesterday, but investors reacted negatively when it was confirmed to have lasted only about 10 minutes, according to CNBC. Today's bounce for both Lordstown and Nikola stocks comes after extended share declines, and may just be a product of today's positive market action.
Lordstown Motors Endurance pickup truck. Image source: Lordstown Motors.
Now what
Hyzon provided its second-quarter financial results a little over a week ago, where it said it has already delivered its first hydrogen fuel cell electric trucks to customers in Europe. It also announced a new agreement with Southern California port trucking company Total Transportation Services (TTSI). Hyzon said it will provide TTSI with a Class 8 heavy-duty fuel cell electric truck for a 30-day trial in the fourth quarter of this year.
TTSI also has an agreement with Nikola. In May 2021, Nikola announced a new collaboration with TTSI that will also include trials and included a letter of intent for TTSI to order 100 Nikola Class 8 battery electric and fuel cell electric semi-trucks. For investors, however, these agreements shouldn't move the needle unless, or until, they become actual orders. But they represent progress for both companies and show there could be more demand for electric heavy duty trucks.
Lordstown also says it will begin limited production of its Endurance pickup truck next month, and that was confirmed in the brief shareholder meeting yesterday. Each of these companies still has much to prove. And not all may be successful. Today's bump in shares seems really to just be normal volatility, particularly after steep slides the stocks have experienced this year. These all remain long-term, speculative stocks.
