Oklo adds to recent losses as FT profiles '$20B nuclear startup without any revenue'

[Model of atom and elementary particles. Physics concept. 3D rendered illustration.]
vchal/iStock via Getty Images

Oklo (NYSE:OKLO [https://seekingalpha.com/symbol/OKLO]) -10.8% in Wednesday's trading, extending losses over the past five days to nearly 30%, as the _Financial Times_ profiled [https://www.ft.com/content/cdf09f0e-d673-41f4-8faa-fe795a2b872e] the company that has ridden a wave of investor enthusiasm to propel its stock market valuation above $20 billion, rising more than 500% YTD.

The surge, buoyed by enthusiasm from retail investors who make up an outsized proportion of its shareholders, worries experts who fear the stock has become wildly overheated, and has fed criticism over the company's links to the Trump administration whose energy secretary Chris Wright is a former Oklo (NYSE:OKLO [https://seekingalpha.com/symbol/OKLO]) board member.

The U.S. Department of Energy has selected Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]) for programs that aim to fast-track the construction of small modular reactors and nuclear fuel fabrication plants, and committed to provide the company with a specialized and scarce reactor fuel.

Recent reports have said the DoE may provide Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]) with access to weapons-grade
plutonium to make its fuel.

A 2022 decision by the U.S. Nuclear Regulatory Commission to reject a previous Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]) application to build a small modular reactor that uses liquid sodium rather than water as a coolant has raised questions from those who have noted previous efforts to build such reactors that have not managed to prove they are commercially viable at scale.

Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]) has so far signed non-binding memorandum of understandings with major tech companies but no legally binding power purchase agreements, a further cause of concern for some analysts.

Some in the industry also flagged the dangers of having an army of small shareholders as a source of finance, fearing the investors may get spooked and dump their positions if the company runs into trouble.

MORE ON OKLO

* Oklo: Unresolved Capital, Licensing, And Fuel Risks Potentially Signal Meltdown [https://seekingalpha.com/article/4829457-oklo-unresolved-capital-licensing-fuel-risks-potentially-signal-meltdown]
* Oklo: Mini-Reactor Opportunity At Full Price [https://seekingalpha.com/article/4826099-oklo-stock-mini-reactor-opportunity-at-full-price-reiterate-hold]
* Oklo: Digging Deeper Into The Risks The Market Is Ignoring [https://seekingalpha.com/article/4825979-oklo-digging-deeper-into-the-risks-the-market-is-ignoring]