Plug Power (NASDAQ: PLUG) shares plummeted 5.45% in pre-market trading on Thursday, despite the company announcing the commissioning of a new hydrogen liquefaction plant in Louisiana. The sharp decline raises concerns about investor sentiment and the company's financial outlook.

Hidrogenii, a joint venture between Plug Power and Olin Corporation, revealed the successful commissioning of a 15 metric-ton-per-day hydrogen liquefaction plant in St. Gabriel, Louisiana. This facility, one of the largest electrolytic hydrogen liquefaction plants in North America, increases Plug's total production capacity to 40 tons per day. CEO Andy Marsh stated that the plant would strengthen the company's financial position by leveraging a dependable, cost-effective hydrogen source and reducing reliance on third-party suppliers.

However, the market's negative reaction suggests that investors may be focusing on other factors affecting Plug Power's performance. Recent analyst reports have highlighted concerns about the company's cash reserves and capital-intensive nature. Additionally, with a consensus price target of $3.92, implying a 134% return from current levels, some market participants may be skeptical of Wall Street's optimistic outlook. As Plug Power continues to expand its hydrogen production capabilities, investors will be closely watching for signs of improved financial performance and profitability.