Recently, Plug Power (NASDAQ: PLUG) stock saw a 7.1% increase thanks to the buzz surrounding the growing popularity of hydrogen power. This surge in interest was fueled by the news that BMW (OTC: BAMXF) (OTC: BMWYY) plans to mass-produce its first-ever hydrogen fuel cell car in collaboration with Toyota Motor (NYSE: TM). Given Plug Power’s goal to become the world’s leading producer of liquid hydrogen for hydrogen-powered vehicles, it’s no surprise that investors are showing enthusiasm for the stock.
However, there are some important factors to consider in this story. While the news of the Toyota and BMW partnership is not entirely new, new details have emerged, including the projected release date of the new fuel cell electric vehicle in 2028. BMW has designed its “Neue Klasses” vehicle architecture to accommodate hydrogen fuel tanks, which bodes well for Plug Power and its fuel of choice.
Despite the positive developments, there are concerns about Plug Power’s financial situation. With only $62 million in cash, $916 million in debt, and a substantial annual burn rate of $1.5 billion, the company may face challenges in sustaining its operations until it can generate revenue from hydrogen fuel sales to BMW customers.
Given these considerations, investors may want to think carefully before investing in Plug Power. It’s worth noting that the Motley Fool Stock Advisor team recently identified 10 stocks poised for significant growth, and Plug Power did not make the list. The stocks recommended by the Stock Advisor have a history of delivering impressive returns, surpassing the performance of the S&P 500 since 2002.
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In conclusion, while Plug Power’s recent stock surge reflects the growing interest in hydrogen power, investors should weigh the company’s financial challenges and consider other investment opportunities that offer strong growth potential. Stay informed and make strategic investment decisions to maximize your portfolio’s performance. Visit Extreme Investor Network for more expert insights and investment recommendations.