Oklo Inc. (NYSE:OKLO) shares surged 5.44% in pre-market trading on Wednesday, despite reporting a wider-than-expected loss for the third quarter. The nuclear energy startup's stock rally appears to be fueled by investor optimism over the company's accelerated project timelines and strong government support.

During the earnings call, Oklo CEO Jacob DeWitte highlighted the company's Idaho project, stating it was moving at "Manhattan Project–level speeds." This rapid progress is largely attributed to the Department of Energy's new authorization framework, which allows Oklo to begin construction while still in the licensing process, significantly reducing regulatory risks.

Further boosting investor confidence, Oklo revealed its selection for three DOE Reactor Pilot Program projects, including a plutonium-fueled test system and a fuel fabrication facility. The company's innovative approach to convert government plutonium stockpiles into advanced reactor fuel was described by DeWitte as "a game-changer," potentially transforming a $20 billion liability into a valuable resource for the U.S. nuclear supply chain.

While Oklo reported a loss of 20 cents per share for Q3, deeper than the expected 13 cents, the market appears more focused on the company's long-term potential and its progress in revolutionizing the nuclear energy sector. As Oklo continues to advance its projects with government backing, investors seem willing to overlook short-term financial setbacks in favor of the company's ambitious growth prospects.