Investing.com — Here is your weekly Pro Recap of the past week’s biggest headlines in the electric vehicle space: an earnings miss and angry workers at Tesla; a vow from Nio; and a delisting at Lordstown.
Nikola Corp (NASDAQ:NKLA), an American truck manufacturer, stole the spotlight this week when its stock price experienced a remarkable 62% surge on Thursday thanks to a significant strategic supply partnership with hydrogen producer BayoTech.
Per the partnership agreement, BayoTech has committed to purchasing up to 50 of Nikola’s Class 8 hydrogen fuel cell trucks over the next five years. The first batch of 12 trucks is set to be delivered between 2023 and 2024.
“Nikola and BayoTech are united by a common goal of providing reliable access to hydrogen throughout the United States,” said Michael Lohscheller, President and CEO of Nikola Corporation.
In return for this collaboration, Nikola has agreed to acquire up to 10 of BayoTech’s HyFill hydrogen transport trailers. These trailers serve a critical role in the transportation of high-pressure hydrogen from production sites to refueling stations.
“BayoTech’s low-carbon hydrogen fuel and transport equipment will play an important part in supporting the adoption of Nikola’s Class 8 fuel cell electric zero-emission trucks,” added Lohscheller.
Along with their partnership with BayoTech, Nikola sealed a deal with Bosch (NS:BOSH) to become the engineering company’s pilot customer for their volume production fuel-cell power modules.
Bosch revealed Thursday that the company is investing $2.8 billion in hydrogen fuel cell technology from 2021 to 2026. According to Bosch, by 2030, approximately 20% of newly manufactured trucks weighing six metric tons or more are expected to be equipped with fuel-cell powertrains.
Production of Bosch’s fuel-cell power module will begin at its Feuerbach plant on the outskirts of Stuttgart and in Chongqing in China.
Shares of NKLA ended trading Friday at $2.25, 19.7% off its high of $2.80, which they hit Friday morning.
According to a letter sent to owners, “The $7,500 federal tax credit will likely decrease after December 31, 2023 for some models. New Model 3 and Model Y vehicles delivered by December 31, 2023 still qualify for the full credit.”
Currently, half of the $7,500 credit is granted if at least 50% of a vehicle’s battery components are made or assembled in North America. The other half of the credit is awarded if the company sources at least 40% of the battery’s critical minerals from the U.S. or a country with a free trade agreement.
These requirements are respectively rising to 60% and 50% next year.
Rivals race to India
One location that does not currently have a free trade agreement with the United States is India, where Tesla has been trying to gain a foothold for years.
According to the Times of India on Thursday, Tesla has reopened discussions for investment opportunities in the most populous country in the world.
Reports from India indicate that the company is in talks with the Indian government regarding an investment proposal aimed at establishing a factory that will ultimately be able to produce 500,000 EVs per year.
The vehicles will have a starting price of 2 million rupees (1 rupee = $0.012), more than twice as much as India’s most affordable EV, the MG Comet, and a half-million rupees higher than the Tata (NS:TAMO) Nexon EV.
Rival automaker BYD (SZ:002594) is also trying to gain a position in the Indian market, submitting a $1 billion investment plan aimed at manufacturing electric vehicles and batteries in collaboration with its partner, Megha Engineering.
According to Reuters, BYD and Megha jointly submitted a proposal to Indian regulatory authorities, outlining their intention to establish an EV joint venture. The long-term objective of this venture is to manufacture an extensive range of electric vehicles under the BYD brand within India.
Shares of TSLA ended trading Friday at $281.38 – up 3.2% on the week.
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