After popping on Friday, shares of small modular (nuclear) reactor (SMR) company Oklo (OKLO +4.25%) are giving back some gains Monday afternoon.
President Trump might be the reason for that.
Image source: Getty Images.
U.S. vs. U.K.
Reports that shipping companies might use small nuclear reactors to power containerships helped lift Oklo stock late last week. Today's drop seems to have more to do with big nuclear reactors, however.
According to London's The Guardian, British Prime Minister Keir Starmer wants to have Rolls-Royce (RYCEY +5.08%) build the United Kingdom's first SMR reactors in Wales, to be followed by larger nuclear reactors that the company would build elsewhere. The Trump Administration doesn't seem concerned about the SMRs, but is complaining that Britain didn't give the larger contracts to American nuclear company Westinghouse.
U.S. Ambassador Warren Stephens told the British: "We are extremely disappointed by this decision, not least because there are cheaper, faster and already-approved options to provide clean, safe energy."
NYSE: OKLO
Key Data Points
A reason not to buy Oklo stock?
He appears to be referring to Westinghouse, and more broadly, to an agreement announced last month, whereby Westinghouse will build up to eight large AP1000 nuclear reactors in the United States. The Guardian notes that "under the terms of that deal, the Trump administration could end up taking a stake in the company."
And that there could be the real rub for Oklo.
President Trump appears to be securing a financial stake for the U.S. government in Westinghouse and in large nuclear reactors. And if this is the new official U.S. policy, it would be logical for the U.S. government to favor nuclear contracts that generate profits for the government -- which is to say, contracts for large nuclear reactors built by Westinghouse.
And not contracts for small SMRs built by Oklo.
