NKLA - Why Plug Power Shares Dropped While Nikola Soared Friday
Shares of electric truck maker Nikola (NASDAQ: NKLA) jumped Friday morning, just a day after a big partnership announcement. After soaring nearly 14% in early trading, Nikola shares were holding on to a gain of 7.5% as of 11:20 a.m. ET. Investors in hydrogen production company Plug Power (NASDAQ: PLUG) are moving that stock in the other direction after the announcement, however, with shares down 4% at that time.
Nikola and Plug Power said yesterday they were initiating a strategic partnership intended to expand the use of hydrogen fuel. The deal would seem to make sense since Nikola makes battery- and hydrogen-powered heavy-duty trucks, while Plug Power is a growing producer of hydrogen. But the companies are also competitors in some ways, which could explain why the stocks are moving in opposite directions today.
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Why Plug Power Shares Dropped While Nikola Soared Friday