It seems holiday joy came early this year for hydrogen electric vehicle (EV) companies Nikola (NASDAQ:NKLA), Hyliion (NYSE:HYLN) and Hyzon (NASDAQ:HYZN). Each company reported strong growth today amid an apparent sector-wide upswing for hydrogen EV stocks. NKLA, HYLN and HYZN, are up 18%, 8.4% and 13.72%, respectively, heading into market close.
What’s behind the hydro-hype lifting stocks today?
Nikola is seemingly the main source of upward momentum for the industry, with Hyliion and Hyzon along for the ride. Lately, Nikola has had a number of positive developments changing perspectives on the once-controversial stock. Recently, Nikola delivered the first in a series of Tre battery electric vehicle semi-trucks promised to Total Transportation Services. For a startup with as checkered a past as Nikola, delivering its first vehicle to a real, paying customer comes as a big source of confidence for hesitant investors. Nikola spared no expense to ensure the Dec. 17 delivery went as smoothly (and PR heavy) as possible. A number of public figures made appearances to support the electric future, including several California lawmakers.
Yesterday, Nikola took to Twitter to commemorate the event and offer a sly hint at future deliveries.
— Nikola Motor Company (@nikolamotor) December 22, 2021
What Else Has Hydrogen EV Stocks Climbing?
With high-growth industries like the EV space, news for one often translates into news for all. Today appears no different, as Nikola’s uplifting delivery seems to have spurred on a sector-wide jump. Now, as mentioned, the delivery itself happened nearly a week ago, on Dec. 17. So, why are EV stocks just now gaining? Frankly, it’s unclear, but it likely has more to do with Nikola than anything else.
Two days ago, the company agreed to settle with the U.S. Securities and Exchange Commission (SEC) on a $125 million fraud charge. Nikola’s ousted founder and former chairman, Trevor Milton, was arrested this summer on accusations that he was lying to investors about the state of its electric trucks. And he was. Milton earned billions in investments from a number of companies and institutional investors, after making sometimes completely fabricated claims about the company. This week’s settlement comes as a soft close to the dark chapter that had Nikola facing off with the SEC. Despite the hefty fine, the news likely reads positively to investors ready to forget about the controversial streak.
Burgeoning industries move in often loud and mysterious ways, and EV stocks are proving just that. Nikola’s redemption arc seems to have come as a market-wide buy signal for the sleepy stocks, which are frequently overshadowed by media mainstays like Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN).
On the date of publication, Shrey Dua 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.