Nikola Tre FCEV Receives CARB Executive Order

Rhea-AI Summary

Nikola Corporation (NKLA) has received a California Air Resources Board (CARB) Zero Emission Powertrain Executive Order, enabling its Tre hydrogen fuel cell electric vehicle (FCEV) to qualify for the Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP). This allows purchasers to obtain incentives up to $288,000 per truck. The Tre FCEV is designed for diverse applications with a range of up to 500 miles and aims to reduce the total cost of ownership through the HVIP funding. Full production deliveries are expected in the second half of 2023.

Positive

• Eligible for HVIP program, providing incentives up to $288,000 per FCEV.
• Launch of Tre FCEV supported by significant funding, enhancing competitive cost of ownership.
• Expected range of 500 miles, appealing for various commercial applications.

Negative

• Dependence on successful HVIP approval could introduce uncertainty.
• Forward-looking statements indicate potential risks that could affect actual results.

California HVIP Incentive Program Eligibility Underway

PHOENIX, Dec. 22, 2022 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero tailpipe emission transportation and energy supply and infrastructure solutions, announced that it has received a California Air Resources Board ("CARB") Zero Emission Powertrain ("ZEP") Executive Order that is a requirement for Nikola's Tre hydrogen fuel cell electric vehicle ("FCEV") to be eligible for CARB's Hybrid and Zero Emission Truck and Bus Voucher Incentive Project ("HVIP") program. Following receipt of this Executive Order, Nikola has submitted an application for eligibility of the Nikola Tre FCEV as an authorized vehicle under the HVIP program for a base incentive amount valued at $240,000 per FCEV truck.

CARB's ZEP Executive Order is 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. HVIP is an important program intended to advance commercialization and to help reduce the total cost of ownership of advanced commercial vehicles in the state of California. HVIP is unique among incentive programs and is viewed as more powerful than other incentive programs in accelerating adoption of zero tailpipe emission commercial vehicles in that it is a first-come, first-served incentive program that does not require the retirement and scrappage of an existing diesel vehicle.

Upon final HVIP approval, purchasers of the Nikola Tre FCEV in 2023 will be able to qualify for a base incentive valued at $240,000 per truck; $270,000 per truck for drayage fleets; or up to $288,000 per truck for fleets with (i) 10 trucks or less, (ii) performing drayage operations, and (iii) located within a disadvantaged community area. Eligible non-drayage fleets may secure up to 30 HVIP vouchers and drayage fleets may secure up to 50 vouchers.

In addition to the funding provided by HVIP, purchasers of Nikola's Tre battery-electric vehicle ("BEV") and FCEVs will also qualify for an additional $40,000 in clean commercial vehicle tax credits in 2023 from the federal government due to the passage of the Inflation Reduction Act.

According to Nikola President and CEO, Michael Lohscheller, "Obtaining this CARB Executive Order is an important step for Nikola to support the launch of the Tre FCEV in California, our first priority market for this zero-emission powertrain option, with full production deliveries expected to start in the second half of 2023. We expect that the funding available through HVIP will drive a competitive total cost of ownership for the Tre FCEV truck, powered by the hydrogen fuel supply and infrastructure we are developing, and serviced by our local dealer network."

Lohscheller added: "In anticipation of the roll out of this much anticipated vehicle, we encourage fleets operating in California to familiarize themselves with our Tre vehicle platform by visiting our dealers nationwide and experiencing our Tre BEVs, which demonstrate the advanced technology and driver-centric design that will be featured in the Tre FCEV. Nikola and its dealer network are taking orders for the FCEVs now."

With a range of up to 500 miles, the Nikola Tre FCEV is expected to have among the longest ranges of all commercially available zero tailpipe emission Class 8 tractors 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.

With an estimated fueling time of less than 20 minutes at Nikola fueling stations based on expected technology improvements, transitioning from diesel to hydrogen is anticipated to be a seamless experience. Further benefits are expected to result in a reduced need for extensive electrical infrastructure planning and build out, particularly as Nikola's public fueling infrastructure network continues to develop.

Nikola's Tre BEV, with a range of up to 330 miles, qualified for HVIP certification in California in January 2022.  California purchasers of the Nikola Tre BEV may qualify for an incentive valued at $120,000 per truck, and $150,000 for drayage fleets, helping to reduce the total cost of ownership. The Tre BEV is also eligible for a variety of other incentives across the United States. The Tre BEV started serial production in March 2022 and is available for purchase and delivery now. For more information, please visit Nikola Electrify Your Fleet.

ABOUT NIKOLA CORPORATION:­

Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero tailpipe emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.

FORWARD LOOKING STATEMENTS

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the company's expectations regarding its business, the potential benefits received from the HVIP program and its effect on company truck sales; business model and strategy; the company's expectations regarding its projected truck builds and related specifications; the company's expectations for its trucks and market acceptance of electric trucks; and market opportunity. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal proceedings to which Nikola is, or may become a party; failure to realize the anticipated benefits of the recently completed business combination; the conversion of pre-orders into binding orders; risks related to the rollout of Nikola's business and the timing of expected business milestones; the effects of competition on Nikola's future business; the availability of capital; and the other risks detailed from time to time in Nikola's reports filed with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended September 30, 2022 and other documents Nikola files with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and Nikola specifically disclaims any obligation to update these forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/nikola-tre-fcev-receives-carb-executive-order-301708917.html

SOURCE Nikola Corporation

FAQ

What is the significance of the CARB Executive Order for Nikola's Tre FCEV?

The CARB Executive Order allows Nikola's Tre FCEV to be eligible for the HVIP program, enabling significant financial incentives for buyers.

How much incentive can purchasers receive for the Nikola Tre FCEV?

Purchasers can receive up to $288,000 per Tre FCEV through the HVIP program, depending on eligibility criteria.

When is Nikola expected to begin production of the Tre FCEV?

Full production deliveries of the Tre FCEV are expected to start in the second half of 2023.

What is the range of the Nikola Tre FCEV?

The Nikola Tre FCEV is expected to have a range of up to 500 miles.

What are the potential risks associated with Nikola's forward-looking statements?

Risks include economic conditions, competition, and regulatory changes that could impact Nikola's business and sales projections.