Taking a step back, it’s easy to see the technological hype driving up fuel cell stocks in 2020 has been largely influenced by the arrival of Nikola Motors on public markets. However, hydrogen fuels and fuel cells are very unlikely to become a dominant technology in the marketplace. The duo simply cannot compete economically with more prevalent technologies such as petroleum-based fuels and lithium-ion batteries at scale.
That said, similar to driverless cars and 3D printers, hydrogen fuels and fuel cells could gain traction in certain niche applications, such as fixed transportation routes with on-site fueling infrastructure available to small truck fleets. Of course, investors must acknowledge that success in niche applications would generate far different financial outcomes than a scenario where a full-fledged hydrogen economy takes off. Invest accordingly.