What happened
Shares of electric-heavy-truck maker Nikola (NKLA -2.44%) opened higher on Thursday, after the company announced that its Tre battery-electric semi is now eligible for some significant incentives in California.
As of 10:15 a.m. ET, Nikola's shares were up about 6.7% from Wednesday's closing price, and up about 12.9% since the start of 2022.
So what
Nikola said the state of California has made its battery-electric Tre semi eligible for significant incentives under a program intended to promote the adoption of zero-emission trucks and buses in the state.
The incentive program, administered by the California Air Resources Board, aims to help new-tech trucks and buses achieve rough price parity with existing diesel-powered vehicles.
California buyers of Nikola's Tre electric semi are now eligible for some hefty incentives from the state. Image source: Nikola.
It's real money, too: Buyers of Nikola's trucks in California can now qualify for $120,000 in incentives for each truck they buy. Given that Nikola's battery-electric Tre is expected to be the longest-range Class 8 truck approved for the incentive program, with a range of up to 350 miles, that should help the company win some significant orders.
That's a big deal, and that's why Nikola's stock is up today.
Now what
Nikola has had a string of small-but-bullish news announcements since it made its first deliveries in December. The company was quiet for much of 2021, but it's now clear that it spent last year making significant progress toward mass commercialization of its electric trucks -- and electric vehicle investors are starting to notice.
