On Thursday, Oklo passed an important regulatory step, but the nuclear start-up still faces challenges in winning over investors who doubt its timeline and valuation. The stock rose 3.5% after the Energy Department approved the preliminary safety analysis for Oklo’s Aurora reactor at Idaho National Laboratory, which covers safety controls, design, and hazard management. Here’s what this milestone means and why the stock remains down nearly 25% this year.
The Energy Department’s approval is a real step forward. Oklo’s CEO called it an important milestone and a base for future projects. The Aurora reactor will use recovered fuel from the Experimental Breeder Reactor II, which closed in 1994. Oklo is building a fuel fabrication facility at Idaho National Laboratory and may use plutonium as a temporary fuel while the U.S. develops supply chains for high-assay low-enriched uranium.
This regulatory progress comes at a tough time for Oklo’s stock. In 2025, shares jumped 238% thanks to strong data center power demand and supportive government policies, reaching a record high in October before dropping back. So far in 2026, the stock is down nearly 25%, while the S&P 500 is up 6.2%. Investors are worried about Oklo’s high cash burn and lack of revenue, and they question if the company’s high valuation can last while commercial operations are still years away.
UBS lowered its price target for Oklo to $55 from $60 before Thursday’s news, but kept a Neutral rating. The firm pointed to high capital needs, common cost overruns in nuclear projects, and the need for more progress on Aurora. UBS is still optimistic about U.S. nuclear development overall and sees Oklo’s fuel research partnership with Nvidia and Los Alamos National Laboratory as a good sign.
Oklo secured a binding agreement with Meta Platforms earlier this year to develop a nuclear campus in Ohio, which BofA Securities described as a meaningful step forward. The company is one of nearly a dozen firms selected for a federal pilot program aimed at having at least three test reactors operational at national laboratories by early July.
