Among the hardest-hit electric vehicle (EV) stocks, Nikola (NASDAQ:NKLA) appears to finally be moving in the right direction. Indeed, today’s move of more than 7% higher for NKLA stock is a continuation of some relatively strong momentum for this maker of zero-emissions vehicles.
Unlike other electric battery peers such as Tesla (NASDAQ:TSLA), Nikola focuses on both battery- and hydrogen-fuel-cell-powered electric vehicles. This has made Nikola stock a slightly more volatile company than its peers, to say the least.
This year, Nikola has battled various headwinds that have taken shares of this EV maker lower. Valuation concerns coupled with short-seller allegations last year and regulatory probes have hurt this stock.
However, there are a couple key catalysts driving Nikola higher today. Let’s dive into what’s causing this move in the EV play today.
NKLA Stock Higher on a Number of Catalysts
When Tesla stock rises, the entire EV sector usually gets a boost. Such appears to be the case for NKLA stock today.
The Nikola rival announced some relatively bullish Chinese EV sales numbers for September. These numbers broke records, suggesting global demand for EVs is picking up. For Nikola, and the entire sector, this is an obvious boost.
Additionally, Nikola recently announced a hydrogen production deal with TC Energy (NYSE:TRP). This deal, announced yesterday, provides for a joint development agreement between both companies to develop hydrogen production facilities in the U.S. and Canada.
It should be noted that Nikola is more than just an EV maker. This is an EV infrastructure company, with the focus on growing the fuel cell electric vehicles (FCEV) market in North America. This deal cements the company’s position in this market and appears to be viewed positively by investors today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.