Why Plug Power Stock Just Dropped an Unlucky 7%

Core Viewpoint - Plug Power's stock experienced a decline after the announcement of a $1.7 billion loan guarantee from the U.S. Department of Energy, which was initially anticipated to boost the stock price [1][2]. Group 1: Loan Details - The U.S. Department of Energy has officially closed on a$1.7 billion loan guarantee to assist Plug Power in expanding its domestic manufacturing and hydrogen production capabilities [2]. - Plug Power plans to use the loan to fund up to six projects aimed at producing and liquefying zero- or low-carbon hydrogen at scale across the United States, starting with a green hydrogen plant in Graham, Texas [2]. - The company currently operates similar plants in Woodbine, Georgia; Charleston, Tennessee; and St. Gabriel, Louisiana, producing a combined total of 45 tons of hydrogen fuel per day [2]. Group 2: Production Capacity - The new loan funding for the construction of six additional plants is expected to triple Plug Power's output to approximately 135 tons of hydrogen fuel per day [3]. Group 3: Financial Considerations - Despite the positive news regarding the loan, Plug Power has nearly $930 million in existing debt and less than$94 million in cash [5]. - The company is burning over $1.3 billion in cash annually and reporting annual losses of$1.4 billion [5]. - Historically, Plug Power has a 28-year track record of financial losses, with increasing losses each year [5].