<p>I still think the Plug Power (NASDAQ: PLUG) stock is likely to rise tremendously, largely driven by its stock vehicles. In addition, I believe that the company’s new hydrogen car business, which was unveiled earlier this month, can also lift PLUG stocks in the long run.
But with most investors worried about the coronavirus from China selling high-flying growth stocks, it’s not time to buy the stocks. In fact, I would recommend anyone who already owns the stock to sell it and buy it back later at a lower price when the fear of the coronavirus has diminished.
I took my profits on Plug Power’s shares and plan to buy them back in two or three weeks when I think the fears about the virus will subside.
Plug Power’s new trucking company has enormous potential
On February 20, Plug Power announced that it is partnering with Colorado-based Lightning Systems to develop fuel cell-powered trucks that can travel 200-400 miles.
There is a lot of evidence to suggest that the demand for such trucks will be meaningful. As everyone knows, many companies and governments want to reduce the use of gasoline to reduce pollution and fight global warming. Furthermore, electric vehicles are seen as an important way to achieve this goal.
But when it comes to large trucks, battery-powered electric vehicles are not a good solution. This is because battery-powered electric trucks require a lot of electricity (according to an estimate, charging the battery of one of Tesla’s (NASDAQ: TSLA) Semi-SUVs “would consume as much energy per year as 2,500 EU households”) and requires huge batteries to travel only 250 miles.
Fuel cell-powered trucks can travel much further than battery-powered trucks with a power source of the same weight.
In 2018, Anheuser Busch (NYSE: BUD) bought 800 fuel cell-powered trucks from start-up Nikola and Toyota (NYSE: TM) and Paccar (NASDAQ: PCAR), which owns Kenworth trucks, builds ten fuel cell cars that will be used in two California ports. .
As I have written before, it is more likely that vehicles powered by hydrogen fuel cells can operate during storms and other emergencies, unlike battery-powered electric vehicles, fuel cell-powered vehicles can be charged quickly and not at all dependent on electricity from the grid.
Furthermore, unlike petrol, hydrogen can easily be produced locally and thus stored in areas close to the companies that use it. So in many emergencies where gasoline could not be obtained, hydrogen could easily be obtained.
The conclusion on PLUG stock
Plug Power moving into fuel cell powered trucks is likely to improve the company’s long – term performance, and I’m still very positive about the stock‘s long – term outlook. But with the shares plummeting among the concerns about the coronavirus, they should be sold now and bought back in a few weeks at a lower price, when fears of coronavirus are likely to have diminished.
Larry Ramer has been researching and writing articles about US stocks for 13 years. He has been employed by The Fly and Israel’s largest business magazine, Globes. Larry started writing columns for InvestorPlace 2015. Among his very successful, conflicting choices have been GE, Sun Warehouse and Snap. You can reach him on StockTwits at @larryramer. At the time of writing, he did not own any shares in the above companies.