What happened
Committed to becoming a leading supplier of hydrogen, Plug Power (PLUG +6.07%) must see a growing interest in the adoption of hydrogen-based solutions in order for the company's investments to pay off. Investors are surmising that this is indeed happening based on news today regarding a partnership between Honda and General Motors.
As of 12:03 p.m. ET, shares of Plug Power are up 4.4%, having retreated from their earlier rise of 6.8%.
NASDAQ: PLUG
Key Data Points
So what
Honda announced today an interest in developing a system for hydrogen-powered vehicles. For one thing, Honda is developing a fuel cell electric vehicle (FCEV) with amid a larger "plan to launch an all-new FCEV based on the CR-V 5-seater SUV" in 2024. According to Reuters, Honda aims to increase sales of vehicles that use the new fuel cell system to 2,000 over the next couple of years with a larger goal of 60,000 FCEVs by 2030.
Partnering with General Motors, Honda intends on commencing production of vehicles with the redesigned fuel cell systems in 2023.
Honda has about 15 years of experience in manufacturing fuel cell vehicles. The company was the first to mass produce a fuel cell vehicle, the FCX Clarity, in 2008.
Now what
With major auto manufacturers like Honda and General Motors dedicating energy to broadening their FCEV offerings, investors are speculating that Plug Power's efforts -- such as the recently announced supply agreement -- to become a leading hydrogen producer are paying off.
