SOUTH CHARLESTON - GreenPower Motor Company Inc. (NASDAQ: GP) announced today the finalization of an order for 50 all-electric school buses for seven West Virginia county school districts. The procurement is supported by the EPA Clean School Bus Program, which has allocated $18.5 million for the purchase of these vehicles and associated charging infrastructure.
The finalized order, which increased from the initially announced 47 to 50 buses, came after Monongalia County School District contributed an additional $550,000 from its own funds, as it is not prioritized by the EPA. GreenPower's President Brendan Riley highlighted the collaborative nature of this project, which aims to replace diesel buses with a cleaner alternative for transporting students.
The EPA-funded grant underwent a multi-step process to ensure effective use of federal funds and to establish a charging corridor across the state. GreenPower, along with its dealer and Highland Electric Fleet, worked closely with each school district to assess needs and guide them through the grant application process.
The distribution of the 50 GreenPower buses will be as follows: Cabell County (6), Calhoun County (4), Clay County (3), Grant County (5), Kanawha County (21), Lewis County (6), and Monongalia County (5). These buses include the Type D BEAST, the Mega BEAST with up to 300 miles of range, and the Type A Nano BEAST, which can accommodate up to 24 passengers.
Paul Start, GreenPower's Vice President of Sales – School Bus Group, also noted that the all-electric school buses are eligible for rebate funding under the federal Clean School Bus Program, with applications for the next round of funding due by January 9, 2025.
GreenPower's BEAST models are designed with a unified structure featuring an integrated aluminum body and a high-strength steel chassis, with dual port charging capabilities. The buses are part of GreenPower's suite of zero-emission vehicles, which are purpose-built to be battery-powered.
This announcement is based on a press release statement from GreenPower Motor Company. The company's forward-looking statements involve risks and uncertainties, and actual results may differ from those projected. GreenPower disclaims any intention or obligation to update or revise any forward-looking statements.
InvestingPro Insights
GreenPower Motor Company's recent order for 50 all-electric school buses in West Virginia marks a significant milestone, but investors should consider some key financial metrics and insights from InvestingPro when evaluating the company's prospects.
According to InvestingPro data, GreenPower's market capitalization stands at $38.51 million, reflecting its position as a smaller player in the electric vehicle market. The company's revenue for the last twelve months as of Q1 2023 was $24.69 million, with a concerning revenue growth decline of -53.79% over the same period. This decline in revenue growth is particularly noteworthy given the recent large order announcement.
InvestingPro Tips highlight some challenges facing the company. GreenPower is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could impact the company's ability to fulfill large orders and scale operations effectively. Additionally, the company is "not profitable over the last twelve months," which is reflected in its negative P/E ratio of -1.89.
On a more positive note, GreenPower has seen a "significant return over the last week" and a "strong return over the last three months," with a 32.89% price total return over the past three months. This recent stock performance might indicate growing investor confidence in the company's future prospects, possibly influenced by news such as the West Virginia school bus order.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for GreenPower Motor Company, providing a deeper understanding of the company's financial health and market position.
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