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.
On September 9, 2021, the California Air Resources Board (CARB or the Agency) released a draft proposal for the Agency’s Advanced Clean Fleets (ACF) regulation, which would mandate zero emissions for all new medium- and heavy-duty trucks sold in the state beginning in 2040. The draft proposal provides an exemption for authorized emergency vehicles. (more…)