Plug Power Inc (NASDAQ:PLUG) shares tanked 6.60% on Wednesday after the company disappointed investors with its first quarter results. Its revenues fell 13% to $5.6 million. Quarterly losses widened from $8.6 million or 18 cents to $75.9 million or 57 cents per share. Plug Power took a $68.4 million charge related to its stock warrants. The company shipped just 165 GenDrive units during the first three months of this year.
Plug Power would be a big beneficiary of fuel cell car success
However, one thing that can change the fortunes of Plug Power Inc (NASDAQ:PLUG) is its GenFuel, the hydrogen gas pump for fuel cell vehicles. Fuel cell cars are about to hit the U.S. markets. Many large automakers including Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203) and Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267) are betting big on fuel cell technology. In fact, Toyota ended its deal with Tesla Motors Inc (NASDAQ:TSLA) simply because the Japanese company sees a future in the fuel cell cars market.
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One of the biggest beneficiaries of fuel cell cars would be Plug Power Inc (NASDAQ:PLUG), says Daniel Jennings of Seeking Alpha. Honda Motor Co Ltd (ADR) (NYSE:HMC) and Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203) each aim to sell at least 1,000 units of fuel cell cars in 2015. Bob Carter, Toyota’s VP of automotive operations, believes that fuel cell vehicles could be as popular as Prius. Hyundai Motor Co (KRX:005380) has started leasing its fuel cell-powered Tuscon vehicles in Los Angeles. And Mercedes-Benz plans to start selling its F-Cell fuel cell cars by 2017.
Plug Power has expertise in hydrogen gas pumps technology
Fuel cell vehicles are environment-friendly, and they are likely to have much longer range than electric cars. According to Auto Week, Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203)’s F-cell sedan would go more than 300 miles on a tank of hydrogen gas. As far as hydrogen fueling stations are concerned, California government has already pledged $200 million to build hydrogen fueling stations.
If hydrogen fuel cell cars work as large automakers see a future in this market, there will be plenty of demand for hydrogen gas pumps. And Plug Power Inc (NASDAQ:PLUG) has expertise in this niche with its GenFuel.
Plug Power Inc (NASDAQ:PLUG) shares inched up 0.26% to $3.83 in pre-market trading Thursday.