Please ensure Javascript is enabled for purposes of website accessibility

15 States Unite to Pave Way Forward for Electric Trucks

By Scott Levine – Jul 14, 2020 at 11:32AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Leaders seem to be positively charged up about the potential of electric trucks.

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."

A Nikola Two truck on a highway.

Image source: Nikola.

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."

Scott Levine has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$287.81 (1.72%) $4.87
Nikola Corporation Stock Quote
Nikola Corporation
$3.94 (1.03%) $0.04
Tortoise Acquisition Corp. Stock Quote
Tortoise Acquisition Corp.
Workhorse Group Inc. Stock Quote
Workhorse Group Inc.
$2.91 (6.99%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.