Markets | 2 years ago

Plug Power Inc (NASDAQ:PLUG) Making An Impact In Market For Delivery Vehicles

Plug Power Inc (NASDAQ:PLUG) has been attracting a lot of attention from investors, recording a trade volume that is more than three times higher than its average, during the February 17 session, making its one of the top Nasdaq stocks. During the last week, the stock lost $0.19 of its share value and is currently trading at $1.11 per share. This is despite the fact that the company recently issued a positive update, through Nasdaq stock news. Plug Power recently announced that it has executed on a contract from the U.S. Postal Service, deploying 85 GenDrive hydrogen fuel cell units, for the material handling fleet.

The contract requested a total of 36 units for class-1 sit-down counterbalance trucks and 49 units for class-3 pallet jacks. However, the company is also required to provide maintenance for the products, under a 5-year service contract. A statement from the CEO of PLUG, Andy Marsh, stated that the hydrogen fuel cell-powered fleet in Maryland is now operational. A ceremony was also held for the grand opening of the new fleet, by USPS. Mr. Marsh also congratulated the postal service for successfully switching to a cleaner fuel.

Plug Power has been focusing on delivery vehicles, to upgrade them with its fuel cell technology, which leaves heat and water as the only byproducts. The company has only recently started shipping its technology to delivery services, with FedEx being PLUG’s first customer this month. FedEx reported that it plans to use the new ProGen engines in its freight delivery electric vehicles, in the Los Angeles area. The company has noted that the new technology has also doubled the range of these vehicles.

Mr. Marsh has also voiced his opinion that despite the “electrification” of the auto-industry being inevitable, consumers are reluctant to widely accept the technology, due to short ranges. He pointed out that his company is working to eliminate this concern and ensure widespread adoption. Unfortunately, the market is still in its infancy and is yet to show signs of robust growth.

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