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About The Lion Electric Company
The Lion Electric Company (NYSE: LEV, TSX: LEV) is a North American manufacturer specializing in the design, development, and production of zero-emission vehicles, including all-electric school buses and medium- to heavy-duty commercial urban trucks. With a strong focus on sustainability and innovation, Lion Electric is a leader in the electric transportation industry, addressing the growing demand for environmentally friendly and cost-efficient transportation solutions. The company operates in a vertically integrated model, designing and assembling key vehicle components such as chassis, battery packs, truck cabins, and bus bodies in-house, which allows it to maintain quality control and introduce unique technological advancements tailored to customer needs.
Core Business Areas
Lion Electric’s product portfolio includes Class 5 to Class 8 electric trucks and all-electric school buses, catering to a diverse range of clients, including school districts, fleet operators, and urban logistics providers. These vehicles are designed to reduce greenhouse gas emissions, lower operational costs, and meet the evolving regulatory requirements for sustainable transportation. The company also offers complementary services such as charging infrastructure solutions through LionEnergy, financing assistance via LionCapital Solutions, and grant application support provided by LionGrants. Additionally, Lion provides proprietary telematics solutions under the LionBeat platform and training programs through its BrightSquad initiative to ensure seamless integration of its electric vehicles into customer operations.
Market Position and Industry Relevance
Lion Electric is recognized as a pioneer in the electric school bus market, a segment that has gained traction due to government incentives like the U.S. Environmental Protection Agency’s Clean School Bus Program. The company’s vehicles are equipped with advanced features such as vehicle-to-grid (V2G) technology, enabling them to function as energy storage units during periods of high electricity demand. This innovation positions Lion Electric as a forward-thinking player in the electrification of transportation.
Operational Challenges and Financial Landscape
Despite its innovative contributions, Lion Electric has faced significant financial and operational challenges. The company has undergone multiple financial restructuring efforts, including amendments to its credit agreements and debtor-in-possession financing arrangements. These measures were necessitated by liquidity constraints and the need to align its cost structure with market demand. Additionally, the company has temporarily reduced its workforce and paused manufacturing operations at its Joliet, Illinois facility to streamline operations and focus on its core business areas.
Competitive Landscape
In the competitive electric vehicle market, Lion Electric contends with established players like Blue Bird Corporation, which also specializes in electric school buses, and broader EV manufacturers such as Tesla and Rivian. The company differentiates itself through its focus on medium- and heavy-duty vehicles, vertical integration, and customer-centric services. However, reliance on subsidies and grants, coupled with supply chain disruptions, remains a critical challenge in maintaining its competitive edge.
Conclusion
The Lion Electric Company represents a significant force in the transition to sustainable transportation, leveraging its expertise in electric vehicle manufacturing and innovative technologies. While financial restructuring and operational adjustments highlight the challenges of scaling in a capital-intensive industry, the company’s commitment to zero-emission solutions and its integrated business model underscore its potential to contribute meaningfully to the electrification of transportation across North America.
On August 30, 2022, CEO-Founder Marc Bedard of Lion Electric Company (LEV) acquired 50,000 common shares at C$4.99 per share, totaling C$249,950. Prior to this transaction, Bedard owned approximately 15.2% of the issued common shares, amounting to 26,458,653 shares and 2,877,641 options. Following the acquisition, his ownership increased slightly to 26,508,653 shares. The shares were acquired for personal investment purposes, with potential for future acquisitions or disposals based on market conditions.
The Lion Electric Company (NYSE: LEV) hosted a significant event at its upcoming manufacturing facility in Joliet, Illinois, attended by notable political figures, including Senator Dick Durbin and Governor J.B. Pritzker. The gathering highlighted the company’s commitment to producing all-electric school buses and commercial vehicles, with manufacturing expected to start by the end of 2022. The event emphasized the financial backing from the federal government aimed at clean manufacturing and electric vehicle adoption, including $5 billion for clean school buses and $7.5 billion for charging infrastructure.
The Lion Electric Company (NYSE: LEV) announced its participation in two upcoming investor conferences. The Canaccord 42nd Annual Growth Conference will take place on August 11, 2022, in Boston, while the D.A. Davidson 21st Annual Diversified Industrials & Services Conference is scheduled for September 22-23, 2022, in Nashville. Lion Electric, a manufacturer of all-electric medium and heavy-duty urban vehicles, aims to promote its zero-emission vehicles at these forums. Webcast links will be available on their Investor Relations website.
The Lion Electric Company (LEV) reported its Q2 2022 financial results, delivering 105 vehicles, up from 61 in Q2 2021. Revenue increased to $29.5 million from $16.7 million, though a gross loss of $3.5 million was reported compared to a gross profit of $0.9 million a year earlier. Net earnings reached $37.5 million, influenced by a $56.9 million gain from share warrant obligations. Capital expenditures rose to $44.3 million amid ongoing global supply chain challenges. Lion has a vehicle order book of 2,357 units worth approximately $575 million as of August 4, 2022.
The Lion Electric Company (NYSE: LEV) appointed two new executives, Sydney Dunn as Vice President of Truck Sales, U.S. and Dominik Beckman as Vice President of Marketing and Communications, U.S. Dunn, with over 20 years of experience, previously worked at ElectraMeccanica and General Motors. Beckman, formerly with Hino Trucks, brings two decades of marketing expertise. The company aims to enhance its U.S. operations and accelerate the growth of its trucking division, particularly as it prepares to manufacture zero-emission vehicles in Joliet, Illinois, later this year.
The Lion Electric Company (NYSE: LEV) participated in a roundtable with U.S. Secretary of Energy Jennifer Granholm and Illinois Congressman Bill Foster on July 27, 2022. The discussion centered on deploying zero-emission heavy-duty vehicles and infrastructure to tackle climate change. Lion highlighted its role in the electrification of transportation, boasting over 10 million miles driven by its all-electric vehicles since 2016. Granholm emphasized $62 billion allocated for clean energy and infrastructure, with a focus on electric vehicle charging and carbon capture initiatives.
The Lion Electric Company (NYSE: LEV) announced that its all-electric trucks qualify for funding through Transport Canada's iMHZEV Program. Customers in Canada can receive up to $150,000 in incentives for purchasing medium and heavy-duty vehicles, contributing to a total federal investment of $550 million over four years. Lion's full range of trucks is eligible, with combined provincial and federal subsidies in Quebec potentially reaching $243,750. The program aims to support the transition to zero-emission vehicles while enhancing public health and environmental quality.
Lion Electric Company (NYSE: LEV) announced it will release its 2022 second quarter results on August 5, 2022, before market opening. A conference call will follow at 8:30 a.m. ET to discuss the results. Interested participants can dial (226) 828-7575 or (833) 950-0062 using Access Code 842480. A live webcast will be available on the company's website under the 'Events and Presentation' section. Lion Electric specializes in manufacturing all-electric commercial vehicles and is a leader in electric transportation.
The Lion Electric Company (NYSE: LEV) announced a new at-the-market (ATM) equity program to issue up to US$125 million in common shares. The program, effective immediately, allows the sale of shares at prevailing market prices through a syndicate of agents. The funds raised will be utilized to strengthen the company's financial position and support growth initiatives, including expansion projects in Joliet, Illinois and Mirabel, Quebec. The equity distribution will terminate by July 16, 2024, or upon the sale of all shares.
Lion Electric Company (NYSE: LEV) announced the filing of a preliminary short form base shelf prospectus with securities regulators in Canada and the SEC for the U.S. This prospectus allows the Company to issue up to US$350 million in various securities over the next 25 months. Following the finalization of the prospectus, Lion intends to establish an 'at-the-market' (ATM) equity program for issuing up to US$125 million in common shares. No securities distribution is currently ongoing, and the ATM program's establishment is subject to market conditions.
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