Nikola Expects Inflation Reduction Act To Help Reduce Cost Of Building EV Trucks

Nikola Expects Inflation Reduction Act To Help Reduce Cost Of Building EV Trucks
  • Nikola Corp NKLA noted that incentives provided by the Inflation Reduction Act (IRA) would enable its zero-emission trucks to be competitive on a total cost of ownership basis compared to traditional diesel vehicles.
  • The act, which U.S. President Joe Biden signed in August, provides incentives designed to bring more battery and electric vehicle manufacturing into the U.S.
  • The act is expected to significantly boost Nikola's low-carbon hydrogen energy business strategy, enabling lower-cost hydrogen supply and dispensing infrastructure.
  • The IRA, when combined with other state-based incentives, such as the California Low Carbon Fuel Standard (LCFS), will reduce the overall cost of hydrogen production and dispensing.
  • Nikola's energy business aims to develop access to up to 300 metric tons of low-carbon hydrogen supply and up to 60 hydrogen dispensing stations by 2026.
  • Nikola's vehicle and components production is expected to benefit from provisions of the IRA that will reduce the cost of vehicle manufacturing and accelerate customer acquisition.
  • "Given the expected scale of our hydrogen business model, and our early mover advantage, we believe Nikola is ideally positioned to benefit from nearly every aspect of the legislation at a scale ahead of current industry participants," said Michael Lohscheller, President, Nikola.
  • Price Action: NKLA shares are trading higher by 1.38% at $2.94 on the last check Thursday.

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