Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $59 MCAD
Stock price at time of publication: $ 1.39 CAD
Target price: 14 CAD by Catalyst Research
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Lion Electric Market cap 2 billion USD
Vicinity Motors has today (17/10 2022) announced a record breaking order of 1000 VMC 1200 class 3 electric last mile delivery trucks . The order value exceeds $100 million USD and ESGFIRE personally estimates that EBIT margins could land as high as 20-25 % considering all aspects of the class 3 vehicle including a simplified design. That would according to our own estimates indicate that this order which , according to management, will be fully delivered during 2023 could give the company an EBIT profit of $20-$25 million USD which can be compared to the current market cap of $41 million USD. If we apply a price to earnings ratio of 20 this order alone , assuming our calculations on EBIT profit are correct, it could motivate a market cap of $400-$500 million USD. The new Ferndale facility will according to todays press release have a construction capacity of 10 000 vehicles per year. What’s even more positive is that management states in the press release that they are not facing supply chain issues for the VMC 1200 class 3 vehicle. Vicinity Motors is set for big growth!
Full press release available below
Purchase Order Exceeds US$100 Million; 1,000 VMC 1200 EV Trucks to be Delivered by the end of 2023 with Deliveries to Commence This Month
VANCOUVER, – October 17, 2022 – Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced the receipt of a purchase order for 1,000 VMC 1200 Class 3 Electric Trucks (the “PO”) from Pioneer Auto Group – Vicinity’s exclusive dealer in the province of British Columbia, Canada.
Per the terms of the PO, which exceeds US$100 million in revenue, Vicinity is to deliver a minimum of 1,000 VMC Class 3 Electric Trucks by the end of 2023. Deliveries under the PO are expected to commence this month.
“We are incredibly pleased to announce this transformational milestone in Vicinity’s evolution as a leading commercial EV manufacturer,” said William Trainer, Chief Executive Officer of Vicinity Motor Corp. “Today’s PO validates the years of innovation and development we have invested in expanding our capabilities beyond transit buses and into the commercial truck market. We have increased our credit facilities to accommodate this order and I am confident in our ability to fulfill this PO on-schedule in 2023.
“We started manufacturing this vehicle in Canada and expect to shift to our new facility in Ferndale, Washington, which can accommodate both buses and trucks, by year-end. Given the simplified assembly of the VMC 1200 as compared to a transit bus, Ferndale truck capacity could reach 10,000 vehicles per year. Due to the fact we are not facing significant pressures in the VMC 1200 supply chain specifically, the VMC 1200 will prove to be a significant contributor to our 2023 revenue growth and profitability – enabling our goal of creating sustainable, long-term value creation for our shareholders,” concluded Trainer.
Ray Van Empel of Pioneer Auto Group added: “We continue to see intense customer demand for class 3 commercial EVs, a segment that was largely unfilled prior to the arrival of the VMC 1200. This purchase order is a clear sign of our confidence not only in our sales capabilities at Pioneer Auto Group, but in the superiority of Vicinity’s product. Given the wide array of federal and province level incentives for the adoption of electric vehicles, the VMC 1200 is truly a no brainer to buyers from a financial perspective. I look forward to taking delivery of our first VMC 1200 vehicles in the months ahead, assembled right here in British Columbia.”
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company’s strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.
We own shares of this company personally.
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