Nikola Corporation (NASDAQ: NKLA) has been the target of dubious speculation recently; following allegations of defrauding investors as well as a short-lived $2B lawsuit against Tesla; but if you haven’t noticed, there’s a lot of speculative finger-pointing as the emerging EV market really starts to gain some traction. Today could mark a slight change in winds for the electric truck maker – here’s why…
The company has just announced that its battery-electric commercial vehicle has been deemed eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP); a program run by the California Air Resources Board (CARB). It’s these types of incentivized projects that could really provide a step-up in what is shaping up to be an incredibly competitive market.
We’ve seen what China’s EV subsidies have done for Tesla sales as well as breeding huge growth in the domestic green-energy landscape, and hence there’s no reason why Nikola investors shouldn’t be smiling today. Well, it appears they are – with NKLA stock up around 5% premarket.
The Nikola Tre BEV will be able to qualify for an incentive valued at $120,000 per truck. Consumers can’t really argue with a cost reduction, but the CARB program is limited to the state of California.
Michael Erickson, Global Head of Nikola, Battery-Electric Vehicles, stated:
“We applaud CARB's commitment to a greener future through the HVIP program…Our HVIP approval is anticipated to help dramatically reduce greenhouse gas emissions and lowers the total cost of ownership for Nikola's California-based customers.”
It’s a bright day for Nikola investors, given the companies recent negative focus. As states ramp up green initiatives, competition for grants and incentives will also increase; hence it will be critical for companies like Nikola to establish roots quickly where available. NKLA stock currently trades at a premarket gain of 5.4% at a price of $11.01.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.