Besides the investors who have piled into shares of electric vehicle manufacturers like Tesla (TSLA 1.72%), Nikola (NKLA 1.03%), Workhorse Group (WKHS 6.99%), and Hyliion, which is going public through a merger with Tortoise Acquisition (SHLL), more than a dozen states are expressing enthusiasm about the potential of zero-emissions vehicles. In an effort to encourage the electrification of the trucking industry, 15 states and the District of Columbia today announced the signing of a joint memorandum of understanding (MOU). Directed at the use of medium and heavy vehicles, the group that inked the MOU aspires to eliminate the sales of new diesel trucks by 2050. In the meantime, the MOU targets 30% zero-emissions vehicles by 2030.
Lauding the joint effort, D.C. Mayor Muriel Bowser was quoted as saying, "The electric vehicle industry is primed for tremendous growth. We cannot afford to miss this opportunity to place clean transportation technology and infrastructure at the center of the nation's economic recovery."
While the recently signed memorandum could be a notable tailwind for electric trucking, investors should recognize that the industry is in the nascent stages of its development. Tesla has yet to achieve mass production of its Class 8 electric truck, the Semi, though Elon Musk has expressed enthusiasm for achieving this feat in the near future. Nikola doesn't have its Class 8 trucks on any highways and byways yet -- though it expects to start selling vehicles in 2021. Likewise, Hyliion plans on launching its Hypertruck ERX in 2021.
The signing states are: California, Connecticut, Colorado, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington. According to the press release, "By promoting and investing in electric trucks and buses and the charging and fueling infrastructure needed to serve these vehicles, the signatory jurisdictions will support job creation, and help to build a resilient and clean economy."