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.