Nuclear Start-up Oklo Just Scored Key Regulatory Approvals. Why Hasn't the Stock Gone Up?

A month ago, nuclear stock Oklo (NYSE: OKLO) seemed to have stalled out. The small modular nuclear reactor (SMR) start-up was stuck waiting on critical government approvals to move forward with its business plans.

But the company just announced it's received key government approvals across all three of its major initiatives. You'd think Oklo's share price would soar on the news, but it plummeted instead. Oklo stock is down 20% since the announcement, and it's down more than 70% from its 2025 highs:

Here's why Wall Street wasn't impressed by Oklo's big wins, and what the market seems to be missing.

Why Oklo stock is a win

Oklo announced three new regulatory approvals on March 17, representing regulatory progress on all of its major initiatives.

Image source: Getty Images.

The first was from the U.S. Department of Energy (DoE), approving the Nuclear Safety Design Agreement (NSDA) for Oklo Subsidiary Atomic Alchemy's Groves Isotopes Test Reactor in Texas. The approval was granted as part of the DoE's Reactor Pilot Program (RPP), an initiative by the Trump administration to rapidly develop multiple nuclear power projects this year. The facility will focus on creating a reliable domestic supply of nuclear isotopes for multiple industries.

The second approval was Oklo's first-ever approval from the U.S. Nuclear Regulatory Commission (NRC), which is separate from the DoE. It granted a materials license for Atomic Alchemy to "receive, possess, use, store, and conduct ... activities involving" nuclear isotopes Radium-266, Cobalt-60, and Americium-241.

Finally, Oklo's flagship Idaho Aurora Powerhouse project received NSDA approval by the DoE. This locks in the safety and regulatory framework of the project. The next step, a Preliminary Documented Safety Analysis from the DoE, will allow Oklo to move forward with final design and construction of the facility.

What the market is missing about Oklo

While these approvals are important, what Oklo really needs is approval from the NRC for its Aurora Powerhouses to operate commercially. Oklo's business model for its entire power generation unit hinges on that one approval, which is why these other approvals didn't move the needle. But these DoE approvals make ultimate NRC approval more likely in the long run.

Image source: Getty Images.

Although the DoE and NRC are separate entities, they've been sharing technical expertise and resources since 2019. And in November, they announced they would start coordinating with one another on the reviews of advanced nuclear reactors and fuel technologies like those of Oklo and Atomic Alchemy. While the extent of the collaboration isn't specified, the NRC has agreed to provide "an expedited pathway to approve advanced reactor designs that have been authorized and tested by DoE." That means that every step toward DoE approval is also a step toward NRC approval, which should reassure Oklo investors.

Even with these approvals, Oklo is still a highly speculative and risky pre-commercial stock, and investors should proceed with caution. But at its current price of below $50 per share, and with this new regulatory step forward, Oklo's stock is looking a lot more attractive than it was last month.

John Bromels has positions in Oklo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.