VANCOUVER - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a North American supplier of commercial electric vehicles, announced today a follow-on purchase order from Autobus La Québécoise for twelve 32-foot Vicinity™ Classic buses. These vehicles are slated to service multiple cities in Quebec and are expected to be delivered in 2025.
This order follows a previous purchase of eight buses in December and is part of the company's ongoing relationship with Groupe La Québécoise, a conglomerate providing diverse transportation services across Canada and the United States. William Trainer, the CEO of Vicinity Motor Corp., highlighted the order as a testament to the company's leadership in Canada's mid-sized heavy-duty bus market.
According to Trainer, the Vicinity™ Classic buses offer competitive entry and running costs, which positions them favorably in the market. While diesel-powered, the company also pointed out the increasing shift towards electric vehicles, noting regulatory support and sustainability goals driving this change.
Vicinity Motor Corp. is known for its range of electric, CNG, and clean-diesel buses, as well as the VMC 1200 electric truck, which are distributed through a dealer network and partnerships with manufacturing entities.
The information in this article is based on a press release statement from Vicinity Motor Corp.
InvestingPro Insights
In light of Vicinity Motor Corp.'s recent announcement of a follow-on purchase order for its Vicinity™ Classic buses, it is important to consider the company's financial health and market performance. With a market capitalization of just 36.99 million USD, the company's size indicates that it is a smaller player in the industry, which may affect its ability to scale and compete with larger corporations.
An analysis of the company's financial data reveals a negative P/E ratio over the last twelve months as of Q3 2023, standing at -3.14. This suggests that investors are currently not receiving earnings for their investment, reflecting the company's lack of profitability during this period. Moreover, Vicinity Motor Corp. has experienced a significant revenue decline of 14.8% over the last twelve months, which may raise concerns about its growth trajectory.
Despite the challenges, one of the InvestingPro Tips points out that analysts anticipate sales growth in the current year, which could signal a turnaround for the company. However, another tip highlights that the company operates with a significant debt burden and may have trouble making interest payments on its debt, which could hinder its financial flexibility. For investors looking for more comprehensive analysis, there are 10 additional InvestingPro Tips available at https://www.investing.com/pro/VEV, which could provide deeper insights into Vicinity Motor Corp.'s financial outlook.
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