The Nikola case stands at the intersection of several emerging risk areas in the automotive industry. For example, as regulators in the U.S. and European Union continue to ratchet up the pressure on climate change goals, and environmental, social and corporate governance, boards need to be extra careful about their companies’ commitments to going carbon neutral and the efficacy of electric vehicles.
That means putting clear plans and metrics in place to ensure appropriate follow-through and effective communications with investors so that they are well-informed about the caveats, risks and limitations.
This week, the U.S. Senate advanced a much-anticipated bipartisan infrastructure bill. After months of negotiations and a failed procedural vote last week, the White House and a bipartisan group of Senators unveiled a bipartisan infrastructure deal to provide $550 billion in new spending on July 28. That same day, in a 67-32 vote, 17 Republicans joined all 50 Democrats to invoke cloture on the motion to proceed to the bill. Today, the Senate passed another bipartisan procedural vote to officially consider the bill on the Senate floor. While the Senate continues to work on finalizing the legislative text, the following topline funding provisions were released:
On Wednesday, February 17, the California Governor’s Office of Business and Economic Development (GO-Biz) hosted a live streaming event to unveil its Zero-Emission Vehicle (ZEV) Market Development Strategy rolled out earlier this month. The 100-page strategy is one of the state’s first steps in implementing Democratic Gov. Gavin Newsom’s Executive Order N-79-20, signed on September 23, 2020, and discussed in a prior blog post, which sets ambitious targets phasing out new sales of internal combustion engine vehicles.
On October 2, 2020, the California Air Resources Board (CARB) unveiled a discussion draft of its 2020 Mobile Source Strategy. The strategy incorporates the zero-emission vehicle (ZEV) goals set forth in the recent Executive Order issued by California Governor Gavin Newsom and sets out steps for achieving those goals, such as requiring manufacturers to support and promote advanced technologies and in-use requirements for advanced technologies. (more…)
On September 23, 2020 California Governor Gavin Newsom issued Executive Order N-79-20, expressing the goals that:
- by 2035, 100% of all in-state sales of new passenger cars and trucks will be zero-emission vehicles (“ZEV”);
- by 2045, 100% of all medium-and heavy-duty vehicles in the state be zero-emission for all operations where feasible (and the same goal for drayage trucks by 2035); and
- by 2035, the State will transition to 100% zero-emission off-road vehicles and equipment (where feasible).
Earlier this month, the California Air Resources Board (CARB) hosted an Advanced Clean Cars (ACC) II Workshop to obtain public input on CARB’s development of ACC II regulations. The ACC II rules would be meant to contribute to meeting California’s carbon neutrality targets, advancing zero emissions vehicle (ZEV) technology, and reaching ozone targets under California’s State Implementation Plan. The workshop materials note that CARB views a need for deep reduction to light-duty vehicle emissions to address climate and air quality issues.