This Zero-Emission Vehicle Maker Just Scored $14.6 Million in State Incentives for Major Expansion

2026-01-09 16:19:00 ET

The race to electrify America's commercial vehicle fleet is accelerating as states compete to become manufacturing hubs for zero-emission transportation. With aggressive fleet mandates taking effect nationwide and billions flowing into EV infrastructure, manufacturers of heavy-duty electric vehicles are strategically positioning facilities in regions offering both policy support and financial incentives to capture the transition from diesel to electric power.

Shares of GreenPower Motor Company Inc. ( NASDAQ: GP ) surged on Friday after the company announced it will establish a new manufacturing facility in Santa Teresa, New Mexico, backed by $14.6 million in state financial incentives and bolstered by New Mexico's aggressive zero-emission vehicle policies.

GreenPower manufactures and distributes all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving cargo and delivery markets, shuttle and transit operations, and the school bus sector. The company's decision to locate in New Mexico was driven by three strategic factors: the state's growing electric vehicle ecosystem, Santa Teresa's Foreign Trade Zone designation, and substantial financial incentives.

The financial package includes $5 million through New Mexico's Local Economic Development Act (LEDA) program, which supports businesses through public-private partnerships focused on job creation and economic growth. Additionally, GreenPower will receive $4.6 million in job training incentive funds, $1.36 million in Rural Jobs Tax Credit, and $3.65 million through the state's High-Wage Jobs Tax Credit program. The facility is expected to create 340 permanent jobs in Santa Teresa.

"This is a big win for New Mexico," said U.S. Senator Martin Heinrich, who hosted a congressional briefing with GreenPower on strengthening domestic EV supply chains. "Building these electric heavy-duty vehicles in America means creating high-quality jobs and staying competitive in the race for the future of transportation."

New Mexico has positioned itself aggressively in the zero-emission vehicle space. In May 2025, the state entered into contracts supporting its fleet mandate requiring all state agencies to purchase zero-emission vehicles when available, with the entire state fleet going zero-emission by 2035. Separate contracts totaling $400 million over four years will electrify more than 2,000 school buses and 3,500 state transit vehicles under the "Electrify New Mexico" initiative.

Fraser Atkinson, GreenPower's CEO, highlighted the strategic importance of Santa Teresa's Foreign Trade Zone designation, which allows streamlined customs procedures and cost-effective import and export operations. "The ability to make capital decisions without fear of tariff uncertainties is a game changer in the current environment," Atkinson stated.

The Santa Teresa Borderplex represents a rapidly growing economic zone in southern New Mexico, centered around a key U.S.-Mexico trade hub with major rail connections to Long Beach and Houston through Union Pacific and BNSF networks.

GreenPower anticipates setting up operations in Q1 2026 and taking possession of the manufacturing plant on June 1, 2026.

Shares of GP gained 51.0% Friday to close at $1.24.

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