NKLA - Nikola looks to land $240K FCEV incentive for new buyers

Nikola Corporation ( NASDAQ: NKLA ) announced that it landed a California Air Resources Board Zero Emission Powertrain  Executive Order that is a requirement for Nikola's Tre hydrogen fuel cell electric vehicle to be eligible for CARB's Hybrid and Zero Emission Truck and Bus Voucher Incentive Project program.

Following the development, Nikola ( NKLA ) submitted an application for eligibility of the Nikola Tre fuel cell electric vehicle as an authorized vehicle under the HVIP program for a base incentive amount valued at $240K per FCEV truck.

CARB's ZEP Executive Order is described as a certificate of compliance with CARB regulations for zero-emission powertrains determined to meet specific emissions standards required for sale in California. Obtaining this certification is also a requirement for vehicles to qualify for HVIP.

Upon final HVIP approval, purchasers of the Nikola Tre FCEV in 2023 will be able to qualify for a base incentive valued at $240K per truck; $270K per truck for drayage fleets or up to $288K per truck for fleets with less than 10 trucks or located within a disadvantaged community area.

In addition to the funding provided by HVIP, purchasers of Nikola's ( NKLA ) Tre battery-electric vehicle and FCEVs will also qualify for an additional $40K in clean commercial vehicle tax credits in 2023 from the federal government due to the passage of the Inflation Reduction Act.

The Nikola Tre FCEV is expected to have among the longest ranges of all commercially available zero tailpipe emission Class 8 tractors at up to 500 miles, while realizing weight savings when compared to BEV Class 8 trucks with similar range. "The Tre FCEV is well-suited for a variety of applications ranging from drayage and intermodal to metro-regional truckload and less than truckload to certain specialized hauling use cases," noted the manufacturer of heavy-duty commercial battery-electric vehicles.

Shares of NKLA fell 0.82% in the premarket session on Thursday and are off 75% for the year.

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