, which has skyrocketed 500% + since April. Love it or hate it, no one denies that Musk is a genius. Built Tesla (TSLA)—Easily the world’s most innovative car company — from scratch. When not directing Tesla, he works a “side job” as a space scientist for his private space company, SpaceX. “Data-reactid =” 13 “> That is the last insult Elon Musk launched Nikola Motors (NKLA), which has skyrocketed 500% + since April. Love it or hate it, no one denies that Musk is a genius. Built Tesla (TSLA)—Easily the world’s most innovative car company — from scratch. When not directing Tesla, he works a “side job” as a space scientist for his private space company, SpaceX.
So, you would think that only fools would bet against Musk. But that is what we have been doing lately. No, we have not been “shortening” Tesla. Instead, we invest heavily in hydrogen energy, including Nikola Motors.
But Musk hates hydrogen fuel cells. He called them “dumb cells”. And he says using them to power vehicles is “incredibly stupid.” Their basic objection is that using hydrogen to store energy can never be as efficient as storing electricity in a battery.
Musk is not alone in his hatred for hydrogen
Years ago, hydrogen powered vehicles were supposed to be the next big thing. For a time, hydrogen ran head-to-head with electric cars as the best bet to replace gasoline-powered cars. Recently, in 2017, a survey of car company executives said that hydrogen-powered vehicles would beat electric vehicles.
But thanks largely to Tesla’s success, electric vehicles took off. And hydrogen was never too much. Hydrogen lost the popularity contest, and once hot hydrogen reserves cooled.
It has fallen 39% since its IPO in 2018. “data-reactid =” 82 “> So, there is Bloom Energy (BE). It has fallen 39% since its IPO in 2018.
No one wanted to have anything to do with hydrogen reserves. They were possibly the most hated populations on the planet.
And then, seemingly out of nowhere, hydrogen reserves, like Nikola Motors, took off
Plug Power has shot up more than 4,300% since early 2013. Ballard Power has increased more than 3,000% during the same period. Bloom Energy has recovered 239% since hitting bottom. In other words, hydrogen reserves went from being the “ugly ducklings” of green energy to some of its most popular reserves.
has left any other hydrogen reserves in the dust this year. If the name sounds familiar to you, it’s because Nikola is named after the same boy as Tesla: scientist Nikola Tesla. “Data-reactid =” 110 “> But Nikola Motors (NKLA) has left any other hydrogen reserves in the dust this year. If the name sounds familiar, it’s because Nikola is named after the same boy as Tesla: Scientist Nikola Tesla.
Nikola’s vision is to disrupt the $ 1.2 trillion truck market. Although it has secured 14,000 pre-orders, it could be argued that it was the most hated hydrogen reserve in existence. The company has not yet sold a single real truck.
Some people even accused Nikola of selling “vaporware”. In tech circles, this is a teasing term for a product that is advertised, marketed, and promoted, but was never actually created.
After researching Nikola and talking to people in the industry, we knew those who doubted were wrong.
We publicly recommend buying Nikola only hours after it went public on March 3. If you didn’t hear anything about Nikola’s IPO, you’re not alone. Nikola went public through a silent and dark transaction called “reverse merger” that 99.99% of investors were unaware of.
Fast forward to today …
Nikola has been one of the best performing stocks in the world. From $ 11.50 in April, it briefly rose above $ 90 last week. Full Disclosure: We fully went out two weeks ago when it rose almost incredible 103% in one day and closed at $ 73.27.
For example, large companies with large truck fleets like UPS and FedEx are already starting to use them.
Many environmentalists have also joined hydrogen. Hydrogen fuel cells are very clean. They do not produce exhaust gases or any other form of pollution. Its only by-product is water and heat.
Nikola’s charismatic founder Trevor Milton also played a role. He is energetic and masterful in getting investors to buy his vision.
By Investors After many hydrogen reserves fell more than 90%, investors left them for dead. Expectations fell to zero, clearing the way for big, quick profits. “Data-reactid =” 141 “> Frankly, none of this mattered so much in our analysis. Hydrogen appeared on our radar for a reason: Was irrationally hated By Investors After many hydrogen reserves fell more than 90%, investors left them for dead. Expectations fell to zero, clearing the way for big, quick profits.
And note that when Nikola “went public” in March, it was clear that the sentiment toward hydrogen had changed for the better. All three hydrogen reserves I mentioned earlier had doubled or better by March.
Gather that evidence, and it’s not hard to see why Nikola took off. Although no one could have predicted 500% profit in three months.
So is Musk right? Are hydrogen powered vehicles “dumb”? I leave that to the scientists. But as an investment, the hydrogen reserves have been very good for us. And with the exception of Nikola, who has already skyrocketed more than most people’s wildest dreams, I hope they continue higher from here.
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“data-reactid =” 147 “>Article by Justin Spittler, Mauldin Economics
