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Nikola's (NKLA) Tre FCEV is Now Eligible for CARB HVIP Program

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Nikola’s (NKLA - Free Report) Tre hydrogen fuel cell electric vehicle (FCEV) is eligible for CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) program. The program aims to accelerate commercialization and lower the ownership cost of hybrid and zero-emission CVs in California. The program also encourages the adoption of vehicles with zero tailpipe emissions that do not require the scrapping or retirement of existing diesel vehicles. During 2023, the point-of-sale incentive will range between $240,000 and $288,000 per truck.

Tre FCEV’s inclusion in the program will act as a differentiator for Nikola and position it as the only OEM offering both BEVs and FCEVs in 2023. Soon, Nikola will start encouraging potential fleet customers to visit their dealers in order to educate the customers about the Tres FCEV’s advanced technology and driver-centric design. Nikola and its dealers have started taking orders from customers and submitting a request for the HVIP voucher for their Tre FCEV.

HYLA, a hydrogen energy brand launched by Nikola, will power the Tre FCEV with an estimated fueling time of 20 minutes. This will make the process of transitioning from diesel to zero-emissions vehicles a seamless experience for the customers.

Nikola Tre FCEV Class 8 heavy-duty trucks, with a range of up to 500 miles and suitable for a variety of applications, are estimated to be eligible for HVIP program funding of around $457 million in 2023, with an additional $45 million per year provided by the Ports of Los Angeles and Long Beach, each.

Nikola’s Tre BEV, with a range of up to 330 miles, received HVIP certification in January 2022. The owner of the Nikola Tre BEV may receive an incentive of up to $150,000 for drayage fleets and $120,000 per truck, subsidizing the total cost of ownership.

Michael Lohscheller, president and CEO of Nikola, termed the combination of incentives provided by the HVIP program and the Inflation Reduction Act as critical for toning down the total cost of ownership and fueling market demand for the Tre FCEV.

Zacks Rank & Other Key Picks

NKLA currently carries a Zacks Rank #2 (Buy).

A few more top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).

Mercedes-Benz develops, manufactures, and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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