Plug Power Inc (NASDAQ:PLUG), a key player in the hydrogen fuel industry, is facing a myriad of challenges.
The stock is down over 62% year-to-date. PLUG stock took a fresh hit due to disappointing Q3 results and ongoing delays in its hydrogen plant projects. As the company grapples with negative gross margins and liquidity concerns, investors are left questioning the viability of its ambitious plans for a hydrogen ecosystem.
Margin Concerns
Currently, Plug Power’s primary product is the GenDrive fuel cell used in material handling equipment, particularly forklifts in high-volume warehouses. However, the company’s Q3 results revealed a concerning trend, with revenue rising by 5%, but equipment and infrastructure sales dropping by 8%. Gross margins were a negative 69.5%, attributed to a challenging hydrogen supply environment and frequent force majeure events.
Hydrogen Supply
The core issue lies in Plug Power’s struggle to supply hydrogen at a profit, pushing …
