Daimler Truck, First Hydrogen, Siemens Energy – Hydrogen with rebound potential

Daimler Truck – The giant goes shopping

The stock of the world's largest commercial vehicle manufacturer, with over 35 main locations and around 105,000 employees, has continued its upward trend since its low in mid-September at EUR 29.61. Since then, the chart has formed an ascending triangle that could generate a strong buy signal when crossing the horizontal resistance at around EUR 40. The next target would then already be the all-time high of March last year at EUR 47.64.

In 2024, Daimler Truck sold a total of 460,409 trucks and buses worldwide, reflecting a decline of around 12%. By contrast, the battery-electric unit segment saw growth of 17%, delivering 4,035 units.

Daimler Truck has now received an order from Amazon for 200 Mercedes-Benz eActros 600, which the US e-commerce giant plans to use in its European logistics network. Of the total number of trucks ordered, which have a range of 500 km, around 140 are earmarked for use in the UK and 50 in Germany. Amazon currently has 38 electric trucks in operation in Europe since the beginning of the year. To support the new trucks, Amazon is building a network of fast-charging stations with a capacity of 360 kilowatts at its locations, which will enable the vehicles to be charged from 20 to 80% in less than an hour, which corresponds to the legal rest periods for drivers.

First Hydrogen – Expansion of the product range

After last year's sell-off, when First Hydrogen's shares lost around 80% of their value in the wake of the general market weakness in the hydrogen fuel cell segment, a solid base has been forming for weeks around the EUR 0.35 level. The fact that the Relative Strength Index (RSI) and the MACD on a weekly basis have been forming positive divergences for months now is an optimistic sign for a trend reversal.

Both indicators recently provided buy signals. Given the plans of First Hydrogen, which develops light commercial vehicles with hydrogen fuel cell technology that can travel 630 km on a single refuelling, a rebound seems to be a matter of time.

Accordingly, a production plant is to be built in Canada that will produce 25,000 vehicles annually, along with a 35-MW plant for the production of green hydrogen. The Company is also planning further expansion into Europe. Germany has been chosen as the first European market to integrate fuel cell propulsion into existing vehicle platforms of a major German manufacturer.

To expand the ecosystem and provide customers with a 360-degree "Hydrogen-as-a-Service" model, First Hydrogen is also exploring the potential of producing green hydrogen using electricity generated by small modular nuclear reactors.

Balraj Mann, CEO of First Hydrogen, explained: "Nuclear energy, unlike solar or wind energy, offers a constant supply of electricity for hydrogen production. The cost of electricity generated in an SMR would be around 36 USD/MWh. Major technology companies have recognised the need to secure low-cost energy for the foreseeable future and have recently invested significantly in nuclear energy."

Siemens Energy – Trouble looming

With an annual performance of around 330%, the Munich-based company was one of the high flyers last year, and the first few days of trading in the new year also brought further highs, reaching a level of EUR 55.26.

However, after the run of the last few weeks, the share price seems to be taking a breather. On a weekly basis, the Relative Strength Index (RSI) is already showing overbought, which at least points to a consolidation. A pullback even to the breakout level at EUR 34.48, the previous high from 2021, would not be unlikely.

The report that ran across the tickers last week could cause selling pressure. According to the report, 51 Siemens Gamesa 5.X wind turbines in Sweden had to be temporarily shut down due to rotor blade breakage. The turbines marketed under the Siemens Gamesa brand, which is now a fully integrated subsidiary, have been known for their quality issues for some time.

As early as 2023, Siemens Energy had to build up provisions in the billions to respond to possible rework and warranty claims related to products from Siemens Gamesa, which was fully acquired in 2020.

Daimler Truck secured a major order from e-commerce giant Amazon. Siemens Energy had to shut down 51 wind turbines in Sweden due to quality defects. First Hydrogen is planning to expand its "Hydrogen-as-a-Service" model.