{"id":2751,"date":"2022-10-17T11:00:24","date_gmt":"2022-10-17T10:00:24","guid":{"rendered":"http:\/\/esgfire.com\/uncategorized\/vicinity-motor-corp-announces-strategic-partnership-with-sustainability-partners-to-accelerate-government-fleet-electrification-2\/"},"modified":"2023-08-09T14:38:30","modified_gmt":"2023-08-09T13:38:30","slug":"vicinity-motor-corp-secures-record-order-of-100-million-usd-for-1000-vmc-1200-electric-trucks","status":"publish","type":"post","link":"https:\/\/esgfire.com\/en\/all-posts\/vicinity-motor-corp-secures-record-order-of-100-million-usd-for-1000-vmc-1200-electric-trucks\/","title":{"rendered":"Vicinity Motor Corp. Secures Record order of $100 million USD for 1,000 VMC 1200 Electric Trucks"},"content":{"rendered":"<p>Company: Vicinity Motor Corp<br \/>\nListings :TSXV\u00a0,\u00a0NASDAQ<br \/>\nTicker: VMC.V &amp; VEV<br \/>\nMarket cap at time of publication: $59 MCAD<br \/>\nStock price at time of publication: $ 1.39 CAD<br \/>\nTarget price: 14 CAD by Catalyst Research<br \/>\nBusiness: Leading supplier of electric, CNG, gas and clean-diesel buses for<br \/>\nboth public and commercial enterprise use in the U.S and Canada<br \/>\nComparable peer :\u00a0Lion Electric\u00a0Market cap 2 billion USD<br \/>\nWebsite:\u00a0https:\/\/vicinitymotorcorp.com\/<\/p>\n<p><strong>ESGFIRE comment:<\/strong><br \/>\nVicinity 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&#8217;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.\u00a0 Vicinity Motors is set for big growth!<\/p>\n<p>Full press release available below<\/p>\n<p><strong><em>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<\/em><\/strong><\/p>\n<p><strong>VANCOUVER, &#8211; October 17, 2022 &#8211; <\/strong>Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) (&#8220;Vicinity&#8221; or the &#8220;Company&#8221;), 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 \u201cPO\u201d) from <a href=\"https:\/\/www.pioneerautogroup.ca\/\">Pioneer Auto Group<\/a> \u2013 Vicinity\u2019s exclusive dealer in the province of British Columbia, Canada.<\/p>\n<p>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.\u00a0 Deliveries under the PO are expected to commence this month.<\/p>\n<p>\u201cWe are incredibly pleased to announce this transformational milestone in Vicinity\u2019s evolution as a leading commercial EV manufacturer,\u201d said William Trainer, Chief Executive Officer of Vicinity Motor Corp. \u201cToday\u2019s 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.<\/p>\n<p>\u201cWe 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 \u2013 enabling our goal of creating sustainable, long-term value creation for our shareholders,\u201d concluded Trainer.<\/p>\n<p>Ray Van Empel of Pioneer Auto Group added: \u201cWe 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\u2019s 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.\u201d<\/p>\n<p><strong>About Vicinity Motor Corp.<\/strong><\/p>\n<p>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&#8217;s strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit <a href=\"http:\/\/www.vicinitymotorcorp.com\">www.vicinitymotorcorp.com<\/a>.<\/p>\n<p>Legal Disclaimer<br \/>\nWe own shares of this company personally.<br \/>\nInvesting in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advice or recommendations of any kind to either buy or sell any stocks.<br \/>\nCompanies may or may not be paying us for content posted on this website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company: Vicinity Motor Corp Listings :TSXV\u00a0,\u00a0NASDAQ Ticker: VMC.V &amp; 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2462,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[148,128,9],"tags":[],"class_list":["post-2751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-reports-news-interviews","category-vicinity-motor-corp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vicinity Motor Corp. 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