Electric truck maker and frequent headline-catcher Nikola (NASDAQ:TSLA) has even more promising news in an already strong year. This morning, the EV company reported approval for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). It seems Nikola’s comeback story is continuing to add chapters in the new year with another encouraging announcement. Is NKLA stock about to see a resurgence?
The HVIP approval comes by way of the California Air Resources Board (CARB), which certified Nikola’s Tre BEV trucks as zero-emission vehicles. The approval allows California purchasers of the Nikola vehicles to qualify for up to $120,000 in incentives per truck. This will likely further encourage larger fleet orders. And Nikola is no stranger to those lately.
Michael Erickson, Nikola’s global head of battery-electric vehicles, commented on the significance of the HVIP approval. “We applaud CARB’s commitment to a greener future through the HVIP program,” he said. “Our HVIP approval is anticipated to help dramatically reduce greenhouse gas emissions and lowers the total cost of ownership for Nikola’s California-based customers.”
Nikola’s Tre BEV trucks are predicted to be the longest-range Class 8 truck approved under the incentive program. The trucks have a range of up to 350 miles on a single charge.
Will Today’s News Fuel a Rebound for NKLA Stock?
Today’s announcement is seemingly the cherry on top of a slew of strong headlines from the company. Since making its first delivery in December, Nikola has reported signing several letters of intent (LOIs) for the purchase of possibly hundreds of its trucks.
Just this week, the company announced that Covenant Logistics (NASDAQ:CVLG) signed an LOI to purchase up to 50 Nikola semi-trucks. Like most previous LOIs, the purchase is dependent on a successful demonstration program.
Unfortunately, despite a strong string of news items from Nikola, investors are still hesitant. After trending up almost 4% premarket, NKLA ended the day down 2.3%. This likely reflects uncertainty stemming from last year’s streak of scandals related to Nikola’s founder, Trevor Milton.
The future remains uncertain for the company. However, that certainly hasn’t stopped the EV maker from continuing to make headline-grabbing deals.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.