Shares of Oklo Inc. (NYSE: OKLO) tumbled 9.77% in intraday trading on Tuesday following the release of the company's full-year 2024 financial results, which revealed a wider loss and raised concerns about future financial challenges. The nuclear energy start-up reported a net loss of $0.74 per share for 2024, compared to a loss of $0.47 per share in the previous year, spooking investors and overshadowing some positive developments in the company's business update.

In its SEC filing, Oklo stated that it expects to "incur significant expenses and continuing financial losses" in the near future, emphasizing its status as an early-stage company in the capital-intensive advanced nuclear technology sector. Despite the negative financial outlook, Oklo did report some encouraging news. The company announced progress in its regulatory pathway, engaging with the U.S. Nuclear Regulatory Commission in a pre-application readiness assessment for its Aurora powerhouse at Idaho National Laboratory. Additionally, Oklo expanded its reactor design capacity to generate between 15 and 75 megawatts, up from a previous range of 15 to 50 megawatts, to better meet customer demands, particularly in the data center industry.

Analysts remain cautiously optimistic about Oklo's long-term prospects, with Wedbush reiterating an Outperform rating and a $45 price target. However, Citi Research trimmed its price target to $30 from $31, citing concerns over higher cash burn ahead of the commissioning of Oklo's first nuclear reactor. As the company continues to develop its fast fission power plants and advance nuclear fuel recycling technologies, investors will be closely watching Oklo's ability to manage costs and progress towards commercialization, with the stock's sharp decline highlighting the challenges faced by firms in the emerging advanced nuclear technology sector.