Nikola Tre FCEV Receives CARB HVIP Incentive Eligibility

Rhea-AI Summary

Nikola Corporation (NASDAQ: NKLA) has received approval from the California Air Resources Board (CARB) for its Tre hydrogen fuel cell electric vehicle (FCEV) to be part of the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). This eligibility allows customers to access point-of-sale incentives between $240,000 and $288,000 per truck in 2023. Additionally, customers can qualify for a $40,000 clean commercial vehicle tax credit due to the Inflation Reduction Act. The HVIP program is expected to allocate around $457 million for Class 8 trucks in 2023.

Positive

• Approval of Tre FCEV for CARB's HVIP program enables significant incentives for customers.
• Customers potentially access up to $288,000 per truck in incentives, enhancing sales prospects.
• Increased funding availability from the HVIP program and federal tax credits reduce total ownership cost.
• Nikola's innovative FCEV technology differentiates it in the zero-emission commercial vehicle market.

Negative

• None.

Fleets Eligible for $240,000 to $288,000 in California Incentives per Truck

PHOENIX, Feb. 7, 2023 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emission transportation and energy supply and infrastructure solutions, announced that it has received approval from the California Air Resources Board ("CARB") 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. This approval will now enable customers of Nikola's Tre FCEV to access a point-of-sale incentive starting at $240,000 and ranging up to $288,000 per truck, in 2023. Customers will also be eligible for a $40,000 clean commercial vehicle tax credit from the federal government due to the passage of the Inflation Reduction Act.

California's HVIP is an important incentive program intended to advance commercialization and to help reduce the total cost of ownership of hybrid and zero-emission commercial vehicles in the state of California. The program is unique in that it accelerates the adoption of zero tailpipe emission commercial vehicles on a first-come, first-served basis that does not require the retirement and scrappage of an existing diesel vehicle. With the market introduction of the Tre battery-electric vehicle (BEV), Tre FCEV, and infrastructure solutions, Nikola is providing innovative solutions to fleets seeking to combat pollution and climate change.  It is estimated that Class 8 heavy-duty trucks may be eligible for approximately $457 million in funding through the HVIP program in 2023¹, with potentially an additional $45 million per year to be provided by each of the Ports of Los Angeles² and Long Beach³, which may also be distributed through HVIP⁴.

According to Nikola President and CEO, Michael Lohscheller, "The inclusion of the Nikola Tre FCEV in California's HVIP program is a very exciting development as we continue introducing innovative zero-emission truck technology options in our priority sales market and distinguish ourselves as the only OEM offering both battery-electric and FCEVs this year. The combined incentives available to customer fleets through the HVIP program and the Inflation Reduction Act are critical for driving a competitive total cost of ownership and accelerating market adoption of the Tre FCEV, which will be powered by the hydrogen fuel supply and infrastructure implemented through HYLA, Nikola's recently launched hydrogen energy brand, and with service provided by our national dealer network. We look forward to delivering the Nikola Tre FCEVs to customers later this year."

In the coming months, Nikola will be collaborating on commercial demonstrations of the Tre FCEV with potential fleet customers in California. Interested fleets are encouraged to visit with Nikola dealers nationwide to familiarize themselves with the Tre vehicle platform by experiencing the Tre BEV, which includes the advanced technology and driver-centric design that will be featured in the Tre FCEV. Nikola and its dealers are now taking orders and submitting HVIP voucher requests for the Tre FCEV.

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 relative to comparable BEVs. 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 approximately 20 minutes at planned HYLA fueling stations, based on expected technology advancements, and introduction of its mobile fueling options, Nikola is committed to making the market transition from diesel to zero-emissions technologies a seamless experience. It is anticipated this effort will further reduce the need for extensive electrical infrastructure planning and build-out as Nikola expands its public commercial hydrogen fueling infrastructure network.

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, including the $40,000 clean commercial vehicle tax credit from the federal government. 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 from the benefits of the HVIP program and other incentives; its business, business model and strategy; the ability to deliver FCEV and related hydrogen fueling; the company's expectations regarding its projected truck builds and related specifications and timing related to delivery of those trucks and fueling infrastructure; 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.

¹ https://ww2.arb.ca.gov/sites/default/files/2022-10/proposed_fy2022_23_funding_plan_final.pdf at pg. 137
² https://www.portoflosangeles.org/environment/air-quality/clean-truck-program
³ https://polb.com/environment/clean-trucks/#clean-truck-fund-rate-faqs
⁴ https://californiahvip.org/news/port-of-los-angeles-funding-available-for-drayage-trucks-sept-12-in-hvip-funding-also-still-available-in-other-hvip-categories/

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SOURCE Nikola Corporation

FAQ

What are the incentives for Nikola's Tre FCEV in California?

Customers can receive point-of-sale incentives ranging from $240,000 to $288,000 per truck through the HVIP program.

How much funding is available for Class 8 trucks in California in 2023?

Approximately $457 million is expected to be allocated for Class 8 trucks under the HVIP program in 2023.

What federal tax credit can customers claim for Nikola's Tre FCEV?

Customers are eligible for a $40,000 clean commercial vehicle tax credit due to the Inflation Reduction Act.

When did Nikola announce the CARB approval for Tre FCEV?

Nikola announced the CARB approval for Tre FCEV on February 7, 2023.

What distinguishes Nikola's Tre FCEV in the market?

Nikola is the only OEM offering both battery-electric and hydrogen fuel cell vehicles in the zero-emission truck market.