Key points:
- Nikola stock up 5.5% premarket on eligibility for Californian incentive
- BEV commercial trucks customers could benefit from an incentive valued at $120,000
- With the market heating up, programs like these should be a honeypot for EV companies
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.
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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.