What happened
Nikola (NKLA 7.23%) shares are continuing their streak higher today. The battery- and hydrogen-electric heavy truck maker's stock has soared more than 70% in just the last week. Today the stock was higher by 14.9% at 10:35 a.m. ET.
So what
The winning streak began in the days leading up to Nikola's annual shareholder meeting, but additional catalysts have contributed since then. The company adjourned its annual meeting one week ago with plans to reconvene on July 6. The agenda included a proposal to allow Nikola to increase the authorized number of shares in order to raise future capital.
The adjournment is meant to provide time to garner enough votes to pass the proposal. Nikola will need additional capital to survive, and investors are betting that the proposal will eventually pass. Seventy-seven percent of shares voted through June 6 were in favor of the proposal, so it seems the company really just needs to get more shares voted. But there are other positive catalysts helping keep the stock's momentum going today.
Now what
Yesterday's consumer price index report signaled that inflation is slowing enough for the Federal Reserve to soon end its cycle of raising interest rates. That would make future capital less expensive for Nikola to raise.
Today, more potentially good news for Nikola was announced. Hydrogen fuel cell company Plug Power and a partner are teaming up for a new green hydrogen production facility for heavy-duty trucks in Southern California.
Nikola is also working with Plug Power to create hydrogen production and fueling infrastructure to fuel its future fleet of hydrogen fuel cell semi trucks in the region. Developing that infrastructure further is essential if Nikola is to succeed in growing out its hydrogen truck fleet. That other companies are working on it as well will only benefit Nikola, and investors are cheering that today.
