GreenPower Plans To Deliver 88 All-Electric School Buses in West Virginia in Fiscal Year 2025

Rhea-AI Summary

GreenPower Motor Company Inc. announces record deliveries of all-electric school buses for fiscal 2024, with plans to deliver 88 additional buses in West Virginia. The company received an $18,565,000 grant from the EPA for the deployment of these buses, ensuring proper charging infrastructure. GreenPower aims to have nearly 100 all-electric school buses in operation in West Virginia, making the state a leader in per capita deployment. The company experienced a significant increase in school bus deliveries in fiscal year 2024, with production facilities expected to reach high capacity by the end of fiscal year 2025.

Insights

Market Research Analyst

The recent announcement by GreenPower Motor Company about their record deliveries of all-electric school buses signifies a notable shift in the market towards environmentally friendly transportation solutions. This shift is being propelled by increasing government incentives and mandates aimed at reducing carbon emissions. The substantial increase in deliveries, a 356% rise from the previous fiscal year, indicates a robust demand for zero-emission vehicles within the education sector.

From a market perspective, this trend could signal an expansion in the electric vehicle (EV) market share, particularly in the medium and heavy-duty vehicle segments. The focus on purpose-built vehicles for specific sectors, such as school buses, showcases a strategic approach to capturing niche markets that have specific requirements and regulatory support. The involvement of federal funding through the EPA's Clean School Bus Program also underscores the role of policy in driving industry growth and adoption rates.

Furthermore, the company's mention of operational high-capacity production facilities suggests potential for increased future revenue streams. However, it is essential to monitor the scalability of their production capabilities and the sustainability of demand post-incentives. As the market for EVs becomes increasingly competitive, GreenPower's ability to maintain market share and manage production costs will be important for their long-term success.

Environmental Policy Analyst

The deployment of all-electric school buses by GreenPower, especially in the context of the EPA's Clean School Bus Program, reflects a broader governmental push towards greener public services. The provision of funds for both the buses and necessary charging infrastructure indicates a comprehensive approach to fostering sustainable transportation. For stakeholders, this could translate to an increased valuation of companies aligned with environmental policies.

West Virginia's leadership in per capita deployment of all-electric school buses is not just a state achievement but also a potential model for other states. This could lead to a domino effect, encouraging other regions to adopt similar initiatives. As public sentiment continues to favor environmentally conscious decisions, companies like GreenPower could see enhanced brand reputation and customer loyalty, which are intangible assets that contribute to long-term profitability.

It is important to consider the long-term implications of such investments. While upfront costs for electric buses are higher, the lower operating costs and health benefits could result in net savings for school districts. This could be a compelling argument for continued investment in the sector, potentially leading to sustained demand for GreenPower's products and services.

Financial Analyst

The financial implications of GreenPower's increased deliveries are multi-faceted. On one hand, the 356% increase in year-over-year deliveries represents a significant revenue boost. This is likely to be viewed positively by investors and could lead to an uptick in the company's stock valuation. The mention of further delivery increases and production capacity targets for fiscal year 2025 suggests confidence in continued growth and operational efficiency.

However, investors must also weigh the risks associated with the reliance on government incentives. Should these incentives wane or competition intensify, GreenPower's financial performance could be affected. Additionally, the reference to the commercial division's performance and its role in supplementing income from school bus deliveries provides insight into the company's diversification strategy. This could mitigate some of the risks associated with the school bus segment and provide a more stable financial outlook.

Lastly, the transition of school districts to all-electric supporting fleets could represent a new revenue stream for GreenPower. If this trend gains traction, it could lead to a broader customer base and further financial benefits. However, it will be important to monitor the adoption rate and the long-term cost-effectiveness of these vehicles for school districts.

Company Announces Record Deliveries of All-Electric School Buses for Fiscal 2024

SOUTH CHARLESTON, W.Va., April 10, 2024 /PRNewswire/ --  GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV) ("GreenPower"), a leading manufacturer and distributor of purpose-built, all-electric, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced that it plans to deliver an additional 88 all-electric Type D BEAST and Type A Nano BEAST school buses to school districts in West Virginia in GreenPower's fiscal year 2025 which began April 1, 2024. 

"GreenPower is currently manufacturing all-electric, purpose-built school buses purchased by the state of West Virginia in its South Charleston plant," said Fraser Atkinson, CEO of GreenPower. "Following behind that production are the school buses awarded to seven school districts in West Virginia under Round 2 of the EPA's Clean School Bus Program." School buses for other eastern markets like New York, Maryland, Pennsylvania and Virginia, and western markets like Arizona, California, Colorado, Nevada and Oregon are in the fiscal 2025 production schedule as well.

In January 2024, the EPA announced an $18,565,000 grant awarded to GreenPower of WV for the deployment of GreenPower's all-electric, purpose-built, zero-emission school buses in seven West Virginia counties. The grant includes funding for the charging infrastructure to ensure a proper charging strategy for the deployment. "These seven counties were leaders in the #YesWV GreenPower All-Electric School Bus Pilot Project conducted during the 2022-23 school year. The Pilot showed that, in fact, these buses worked well in the conditions and terrain of the Mountain State," said Mark Nestlen, GreenPower's Vice President of Business Development & Strategy. "The EPA funding for both the school buses and the charging infrastructure will ensure a safe and healthy ride for the students."

Atkinson noted that once delivery is complete, nearly 100 GreenPower all-electric school buses will be in operation in West Virginia. "With the next tranche of deliveries, West Virginia will be a leading state in all-electric school bus deployment on a per capita basis," he continued.

The announcement of the planned deliveries comes on the heels of a record number of all-electric, purpose-built, zero-emission school bus deliveries during GreenPower's just ended 2024 fiscal year. "GreenPower's 2024 fiscal year was transformational for our school bus team with deliveries growing significantly due to ever expanding incentives and mandates from local, state and federal government entities," Atkinson stated.

During fiscal year 2024, GreenPower delivered 29 Type D BEAST and 12 Type A Nano BEAST school buses across the country, for a total of 41 deliveries, an increase of 356% from the previous fiscal year. "Our production facilities in South Charleston, West Virginia and Porterville, California are all expected to be operating at high capacity with a target of reaching 50 to 60 purpose-built school buses per quarter by the end of the fiscal year 2025," Atkinson added.

GreenPower President Brendan Riley said that the commercial division also reached significant delivery levels in fiscal 2024. EV Star deliveries to customers other than Workhorse increased by 9% during the fiscal year with a total of 179 EV Star products being deployed during the fiscal year. And during the fourth quarter of fiscal 2024, Workhorse resumed delivery of EV Star Cab & Chassis under the delivery contract entered into in March of 2022.

"We expect that the commercial unit at GreenPower will supplement the income derived by school bus deliveries over the next fiscal year. Purchase incentives and tax breaks continue to provide significant financial benefit to fleet operators who are migrating to all-electric vehicles," Riley stated. "In the fourth quarter of fiscal 2024, we also delivered the first commercial vehicles to school districts who are looking to move, not just school buses, but also their supporting fleet to cleaner energy. We believe that this trend will continue as local school districts experience the financial benefit of all-electric vehicle ownership costs."

Contacts:
Fraser Atkinson
CEO
fraser@greenpowermotor.com 

Brendan Riley
President
brendan@greenpowermotor.com 

Mark Nestlen
Vice President of Business Development & Strategy
mark.n@greenpowermotor.com

Allie Potter
Skyya PR for GreenPower
(218) 766-8856
allie@skyya.com 

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo vans and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose-built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. GreenPower was founded in Vancouver, Canada with primary operational facilities in southern California. Listed on the TSX Venture Exchange since November 2015, GreenPower completed its U.S. IPO and NASDAQ listing in August 2020. For further information go to www.greenpowermotor.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, GreenPower's business and operations and the environment in which it operates, which are based on GreenPower's operations, estimates, forecasts and projections. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "upon", "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Such forward-looking statements include, among other things, that GreenPower plans to deliver 88 all-electric school buses in West Virginia in fiscal year 2025; that following behind the current production in GreenPower's South Charleston plant are the school buses awarded to seven school districts in West Virginia under Round 2 of the EPA's Clean School Bus Program; that school buses for other eastern markets like New York, Maryland, Pennsylvania and Virginia, and western markets like Arizona, California, Colorado, Nevada and Oregon are in the fiscal 2025 production schedule as well; that GreenPower's all-electric school bus production from its South Charleston, West Virginia manufacturing facility will fulfill the 88 deliveries in the state as well as other east coast orders; that the EPA funding for both the school buses and the charging infrastructure will ensure a safe and healthy ride for the students; that once delivery is complete, nearly 100 GreenPower all-electric school buses will be in operation in West Virginia; that with the next tranche of deliveries, West Virginia will be a leading state in all-electric school bus deployment on a per capita basis; that GreenPower's production facilities in South Charleston, West Virginia and Porterville, California are all expected to be operating at high capacity with a target of reaching 50 to 60 purpose-built school buses per quarter by the end of the fiscal year 2025; that the commercial unit at GreenPower will supplement the income derived by school bus deliveries over the next fiscal year; and the trend of moving school districts' supporting fleet to cleaner energy will continue as local school districts experience the financial benefit of all-electric vehicle ownership costs. The material assumptions supporting these forward-looking statements include, among others, that GreenPower's ability to maintain projected production deliveries within certain timelines; expected expansion of GreenPower's production capacity; labor costs and material costs remaining consistent with GreenPower's current expectations; labor availability remaining consistent with GreenPower's current expectations; production of electric buses meeting customer expectations and at an expected cost; equipment operating as anticipated; there being no material variations in the current regulatory environment; and GreenPower's ability to obtain financing as and when required and on reasonable terms. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among other things, not being able to produce the full 88 school buses for any reasons, the delay or decrease in the production as a result of shortage of parts and components, the school bus EPA program not paying out the funds as contemplated or at all, supply chain issues, availability of parts, including shipping delays, availability of capital and availability of qualified employees to produce the buses and others set forth in other public filings of GreenPower (filed under GreenPower's profile on www.sedarplus.ca or with the SEC at www.sec.gov).  Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. GreenPower disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable laws, including the securities laws of the United States and Canada.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. All amounts are in U.S. Dollars ©2024 GreenPower Motor Company Inc. All rights reserved.

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SOURCE GreenPower Motor Company

FAQ

How many all-electric school buses does GreenPower plan to deliver in West Virginia for fiscal year 2025?

GreenPower plans to deliver an additional 88 all-electric Type D BEAST and Type A Nano BEAST school buses to school districts in West Virginia in fiscal year 2025.

What grant did GreenPower receive in January 2024 for the deployment of all-electric school buses in West Virginia?

GreenPower received an $18,565,000 grant from the EPA for the deployment of all-electric, purpose-built, zero-emission school buses in seven West Virginia counties.

How many GreenPower all-electric school buses will be in operation in West Virginia once delivery is complete?

Once delivery is complete, nearly 100 GreenPower all-electric school buses will be in operation in West Virginia.

What was the increase in school bus deliveries for GreenPower during fiscal year 2024 compared to the previous year?

GreenPower saw an increase of 356% in school bus deliveries during fiscal year 2024 compared to the previous year.

What is the expected target production capacity of purpose-built school buses per quarter by the end of fiscal year 2025?

GreenPower aims to reach a target of producing 50 to 60 purpose-built school buses per quarter by the end of fiscal year 2025.