Shares of nuclear energy start-up Oklo Inc. (NYSE: OKLO) plunged 9.77% in intraday trading on Tuesday, as investors reacted to the company's wider annual losses and cautionary outlook on future financial performance. The significant drop came despite some positive developments in Oklo's business strategy and regulatory progress.

In its latest financial report, Oklo revealed a net loss of $0.74 per share for 2024, compared to a loss of $0.47 per share in the previous year. The company also warned of continuing financial challenges, stating in its SEC filing, "We are an early-stage company with a history of financial losses, and we expect to incur significant expenses and continuing financial losses" in the near future. This stark acknowledgment of the company's financial situation appears to have spooked investors, overshadowing some of the positive developments announced by the company.

Despite the market's negative reaction, Oklo shared some encouraging news. The company announced it is expanding its powerhouse offering to support up to 75 megawatts of power output, up from the previous range of 15 to 50 megawatts. This development is aimed at meeting increasing customer demand, particularly from data centers. Additionally, Oklo reported that it is engaging with the U.S. Nuclear Regulatory Commission in a pre-application readiness assessment for its combined license application at Idaho National Laboratory, marking a crucial step in its regulatory pathway. However, these positive developments were not enough to offset investor concerns about the company's financial trajectory in the short term.