VANCOUVER - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles in North America, announced today the receipt of follow-on purchase orders for three Vicinity Classic buses from two transit operators in Quebec, Canada. These buses are slated for delivery in 2025 and will be used by the Canadian public transit agency EXO in the communities of Mirabel and Saint-Jérôme.
The orders were placed by Robert Paquette Autobus et Fils Inc. for one bus and Les Autobus Transcobec (1987) Inc. for two buses. The Vicinity Classic buses, which utilize clean diesel technology, have been highlighted by the company for their low upfront costs, durability, and fuel savings, contributing to their 90% market penetration in the Canadian mid-sized heavy-duty segment.
Brent Phillips, President of Vicinity Motor Corp., stated that the repeat business from long-term customers underscores Vicinity Classic's leadership position in the market. He also mentioned that the company's growth is supported by a diverse product mix, including the Vicinity Lightning electric transit bus and the VMC 1200 Class 3 electric truck.
Phillips emphasized the company's direct sales model, which facilitates ongoing communication with transit operators, particularly those transitioning toward electrification.
Vicinity Motor Corp. leverages a dealer network and partnerships with manufacturing entities to supply its range of electric, CNG, and clean-diesel vehicles, including the recently mentioned Vicinity buses and the VMC 1200 electric truck.
This announcement is based on a press release statement.
In other recent news, Vicinity Motor Corp. has seen significant developments. The company's VMC 1200 class 3 electric truck has been certified by the California Air Resources Board as a zero-emission vehicle for the 2024 Model Year, allowing it to be sold across all U.S. states. This certification also qualifies the VMC 1200 for various state incentive programs, further enhancing its market presence.
In terms of financial performance, Vicinity reported a robust 400% surge in revenue for the first quarter of 2024, largely due to the delivery of 44 VMC 1200 electric trucks and 22 Vicinity Classic clean diesel buses. Despite a net loss of $3.7 million, the company's gross profit reached $1.9 million.
The company has also appointed Jeff Madura as Senior Director of Sales, indicating a strategic move to expand its market share in the commercial electric vehicle sector. Madura's extensive experience in the commercial vehicle industry is expected to bolster Vicinity's sales efforts.
In addition, Vicinity showcased its VMC 1200 Class 3 Electric Truck at the Advanced Clean Transportation Expo, further highlighting the company's active engagement in expanding its market presence. These developments underscore Vicinity's position in the commercial electric vehicle market as it moves ahead of competitors still in the pre-production phase.
InvestingPro Insights
The recent purchase orders for Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) underscore the company's strong position in the Canadian mid-sized heavy-duty bus market. With an emphasis on clean diesel technology, Vicinity Motor Corp. is capitalizing on its cost-effective and durable transportation solutions, which aligns with the company's reported revenue growth. According to InvestingPro Data, the company experienced a significant revenue growth of 65.18% over the last twelve months as of Q1 2024, with an even more impressive quarterly revenue growth of 399.58% in Q1 2024. This suggests that the company's strategy and diverse product mix are resonating well in the market.
However, InvestingPro Tips indicate that Vicinity Motor Corp. operates with a significant debt burden and may have trouble making interest payments on its debt. This is a critical factor for investors to consider, given that the company's short-term obligations exceed its liquid assets. Additionally, while analysts anticipate sales growth in the current year, they do not expect the company to be profitable this year. This presents a mixed picture, reflecting potential growth opportunities alongside financial challenges.
Investors interested in a deeper analysis of Vicinity Motor Corp.'s financial health and market potential can find additional insights on InvestingPro, which offers a comprehensive list of 12 InvestingPro Tips for the company. By using the special coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable insights and make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.