Why Oklo Stock Keeps Going Down
Why Oklo Stock Keeps Going Down
Rich Smith, The Motley FoolWed, June 24, 2026 at 3:50 PM UTC
0
Key Points -
The U.S. Department of Energy will loan utilities $17.5 billion to help them build big nuclear reactors.
Oklo, unfortunately, builds small nuclear reactors.
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Oklo (NYSE: OKLO) stock fell for a third straight day on Wednesday, losing 5% through 11:15 a.m. ET, as investors begin to question the popularity of the small modular nuclear reactors that Oklo (and other SMR companies) have been touting.
Nuclear power plant with seven cooling towers.
Image source: Getty Images.
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What's ailing nuclear stocks this week
The Trump Administration remains very bullish on nuclear power and committed to helping build a nuclear renaissance in the U.S. -- that's the good news. The bad news is that, financially speaking, much of the administration's support is being thrown behind big nuclear reactors.
As The Wall Street Journal reported yesterday, the U.S. Department of Energy is announcing that it will make $17.5 billion in loans available to help electric utilities order and build Westinghouse AP1000 large nuclear reactors. These reactors can generate upwards of 1100 megawatts of energy, compared with Oklo's Aurora Powerhouse reactors, which produce only 75 megawatts.
The funds will be made available to support up to five projects, each with two mega-reactors (so 10 total).
No funding was announced for projects using Oklo's small modular reactors, however.
What does it mean for Oklo?
This doesn't mean the government -- or industry -- is abandoning support for Oklo's SMRs, of course. To the contrary, the Journal's story specifically states that utilities, including Duke Energy (NYSE: DUK) and Dominion (NYSE: D), are interested in building a mix of both large and small reactors. It does, however, suggest that momentum (and money) is shifting to favor large reactors over small ones.
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For now, that's already enough to take some wind out of Oklo's sails. Wall Street already thinks it will be 2030 before Oklo starts earning any profits. Now, it looks like investors might have to wait even longer.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy and Duke Energy. The Motley Fool has a disclosure policy.
Source: “AOL Money”
