Vicinity Motor $VEV stock is moving higher in pre-market trading on October 17, 2022, after the company announced that it received a $100 million purchase order.
Vicinity Motor Corp. Secures US$100M+ Purchase Order for 1,000 VMC 1200 Electric Trucks
On October 17, 2022, Vicinity Motor (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA), a North American supplier of commercial electric vehicles, 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 revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., 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.”
Vicinity Motor secures order for four Vicinity Lightning electric buses
On October 6, 2022, Vicinity Motor announced that it received an order from strategic partner Sustainability Partners for four Vicinity Lightning electric buses via Soderholm Sales & Leasing, Vicinity’s Pacific Islands distributor. The Vicinity Lightning shuttle buses will be used at the Daniel K. Inouye International Airport in Honolulu, the largest airport in the State of Hawaii serving 12 million passengers per year. The State of Hawaii Department of Transportation will utilize SP’s Electric Vehicles as a Service program to finance the conversion of traditional government fleets to Vicinity’s electric vehicles. Soderholm will facilitate the sale and provide long-term technical and maintenance support for the project. The order of four new electric buses is scheduled for delivery in 2023.
“As the State of Hawaii works to meet its sustainability goals and accelerate fleet electrification, our EVaaS program replaces outdated and costly fleet infrastructure with modern electrified solutions like the Vicinity Lightning™,” said Thomas Cain, CEO & Founder of Sustainability Partners. “SP can pay for 100% of the purchase price while concurrently ensuring the vehicles are continually maintained in a state of good repair with embedded long-term support from SSL and Vicinity. We look forward to providing Hawaii and its largest airport an electric solution with a uniquely structured, month-to-month use-based service alternative to the traditional purchase of government fleets.”
Vicinity Motor $VEV Stock Technical Analysis
Vicinity Motor $VEV stock is in a technical downtrend but when the market opens on October 17, 2022, we expect that to change.
