VANCOUVER - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles, announced that its VMC 1200 all-electric truck has met all applicable Federal Motor Vehicle Safety Standards (FMVSS) for the United States National Highway Traffic Safety Administration (NHTSA) self-certification. This certification allows the VMC 1200 to be legally sold in the United States.
The VMC 1200 has also completed U.S. Environmental Protection Agency (EPA) Vehicle Certification and Compliance Testing, confirming its compliance with the EPA's emissions standards. The vehicle achieved 57 MPGe in urban duty cycle testing, as documented by the EPA.
Further, Vicinity anticipates receiving certification from the California Air Resources Board (CARB), which will enable the VMC 1200 to be sold in every state throughout the United States. The CARB certification is also expected to make the VMC 1200 eligible for California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), offering monetary vouchers to reduce the purchase cost for buyers.
Brent Phillips, President of Vicinity Motor Corp., stated, "Meeting FMVSS compliance provides further assurance that the VMC 1200 meets all relevant safety requirements in the United States." He also highlighted the company's position in providing OEM production solutions for the commercial electric vehicle market.
The completion of these certifications is a significant step for Vicinity as it allows the company to expand its market reach across the United States and participate in incentive programs aimed at promoting the adoption of clean vehicles.
This news is based on a press release statement from Vicinity Motor Corp. and does not include any promotional content or subjective assessments. The company is known for supplying electric, CNG, and clean-diesel buses, in addition to the VMC 1200 electric truck, to transit and industrial markets.
InvestingPro Insights
As Vicinity Motor Corp. (NASDAQ:VEV) gears up for broader market penetration in the United States with the certification of its VMC 1200 all-electric truck, the company's financial health and stock performance metrics provide a mixed picture. With a market capitalization of 34.83 million USD, Vicinity operates with significant financial challenges, as indicated by a negative P/E ratio of -1.94, reflecting the company's current lack of profitability.
One of the InvestingPro Tips highlights that Vicinity Motor Corp. is quickly burning through cash, which aligns with their significant debt burden. This raises concerns about the company's ability to sustain its operations and growth without additional financing.
Moreover, the company's gross profit margin over the last twelve months stands at 11.97%, suggesting that Vicinity may be suffering from weak gross profit margins. This could impact its ability to invest in research and development or expand its product line.
Despite these challenges, there is a silver lining. Analysts anticipate a robust sales growth of 65.18% for the last twelve months as of Q1 2024, which could signal potential for the company's future, especially as it begins to capitalize on the certifications for its VMC 1200 electric truck. Vicinity's stock has experienced high price volatility, which could present opportunities for investors with a higher risk tolerance.
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