Why Plug Power stock fell on Friday after a rally earlier in the week

Power socket (PLUG -8.49%) the stock rose as much as 15.3% at its highest point in trading this week before reversing course on Thursday. And on Friday morning, shares of the hydrogen and fuel cell maker tumbled more than 8% and were trading 3.5% lower for the week through 11 a.m. ET, according to data from S&P Global Market Intelligence.

Plug Power announced a new strategy this week that could bring in some cash, but a new development in another part of the clean energy industry dampened investor sentiment and sent the hydrogen stock lower again.

Why Plug Power Stock Was Up Previously

This week, Plug Power announced that it is launching a new equipment leasing platform that could help it raise $150 million in the medium to near term. For starters, it signed three sale and leaseback deals worth $44 million with GTL Leasing, a lessor of hydrogen storage and transportation equipment. Private equity firm Antin Infrastructure Partners owns a majority stake in GTL.

In such transactions, Plug Power can receive lump sum payments for equipment such as trailers and storage tanks, while retaining the right to use them, giving it quick access to funds it can use to cover its expenses day-to-day operations.

Plug Power stock could remain volatile

Plug Power faces an ongoing cash crunch amid falling sales and widening losses, and even issued a going concern warning last year. Its new leasing platform could allow it to raise some cash while it tries to secure larger financing, such as a loan from the Department of Energy. Plug Power has a conditional loan guarantee of up to $1.66 billion and says it is working closely with the department to finalize the loan.

This week, Plug Power also secured an order for 25 megawatts of electrolyzers from Castellon Green Hydrogen, a joint venture between the energy giant BP and utility operator Iberdrola in Spain. While this order signals growing interest in green hydrogen, other sources of clean energy are getting even more attention.

Friday, the utility giant Constellation Energy announced plans to restart a shuttered nuclear reactor in Pennsylvania after signing a major contract to supply carbon-free electricity to a tech giant Microsoftits data centers. The deal could herald more opportunities for nuclear power, which is cheaper to produce, making it even harder for companies like Plug Power to make a compelling case for alternatives like green hydrogen.