Vicinity Motor Corp. Secures Major Order for Electric Buses, Strengthening Its Position in Canada’s Market
North American electric vehicle supplier, Vicinity Motor Corp., has announced that it has received a follow-on purchase order from Autobus La Québécoise. The order comprises of twelve 32-foot Vicinity Classic buses and is expected to be delivered in 2025. This deal comes after Autobus La Québécoise’s previous purchase of eight buses last December, which further solidifies the relationship between the two companies.
CEO William Trainer of Vicinity Motor Corp. sees this new order as a testament to the company’s leadership in the mid-sized heavy-duty bus market in Canada. Despite the fact that these buses will be diesel-powered, they align with the company’s commitment to transitioning towards electric vehicles. This transition is driven by both regulatory support and sustainability goals.
Vicinity Motor Corp. offers an array of electric, compressed natural gas (CNG), and clean diesel buses, as well as the VMC 1200 electric truck. These vehicles are distributed through dealer networks and manufacturing partnerships, showcasing the company’s dedication to providing a diverse range of sustainable transportation options.
While Vicinity Motor Corp. is a smaller player in the industry, with a market capitalization of approximately 36.99 million USD, the company faces certain challenges. An analysis of its performance over the last twelve months reveals a negative price-to-earnings (P/E) ratio of -3.14 as of Q3 2023, indicating difficulties with profitability. Additionally, the company has experienced a decline in revenue by 14.8% during the same period, raising concerns about its potential for growth.
However, analysts are optimistic about the company’s prospects for the current year and anticipate a sales growth. This suggests the possibility of a turnaround for Vicinity Motor Corp. Nevertheless, there are lingering concerns regarding the company’s significant debt burden, which could impact its financial flexibility.
In spite of these challenges, Vicinity Motor Corp. remains a prominent player in the North American commercial electric vehicle industry, demonstrating its commitment to sustainability and serving as a key contributor to the advancement of green transportation.
Analyst comment
Positive news: Vicinity Motor Corp. secures major order for electric buses, strengthening its position in Canada’s market.
As an analyst, the market for Vicinity Motor Corp. is expected to grow as the company secures a major order for electric buses, showcasing its leadership in the Canadian bus market. However, the company’s profitability and revenue decline pose challenges, and its significant debt burden may impact its financial flexibility. Nevertheless, analysts anticipate sales growth for the current year, indicating potential for a turnaround.
