Vicinity Motor Corp (TSX-V: VMC) (OTCQX: BUSXF) a manufacturer of medium size transportation vehicles and electric busses rallied 16% or $1.05 hitting $7.40 during yesterday’s intraday as the company reported very impressive first quarterly results.
On Monday evening, VMC reported revenues of $27.3 Million for the company’s first quarter of 2021 which is an increase of 588% when compared to the same quarter last year which generated only $4 Million for the quarter. While VMC’s revenues increased, so has the company’s gross profits. The company reported gross profits of $4.3 Million compared to $100,000 in gross profits for the same period last year. We’re extremely thrilled to see the growth in revenues VMC has recently posted and we can clearly see that the market is too!
VMC has also stated that the company has delivered a total 67 buses for the three-month period that ended March 31st 2021, a substantial increase from the 6 buses delivered for the same period last year. In addition to the increase of revenue and delivery of its buses, VMC has also received orders for another 10 Vicinity Lightning EV buses. VMC anticipates that delivery of the company’s EV bus is set to take place sometime this year! The company’s CEO Mr. William Trainer stated, "The first quarter of 2021 was a blockbuster quarter by any measure, having delivered 20% more buses in the first three months of 2021 than we did in all of 2020 combined". Mr. Trainer further commented, "I expect to see robust year-over-year growth throughout the remainder of 2021, empowering our drive to create a more sustainable public transportation system. I look forward to providing our shareholders with further updates in the near-term as we launch new products, announce new transit agency customers and successfully execute upon our business plan”.
Its also noteworthy that the company was selected by both the State of Washington and New Mexico to be part of the selected companies for statewide purchasing contracts which is led by the state transit agencies. Being selected as a vendor to state transit agencies is a major step for VMC and could lead to a substantial purchase order for the company’s buses.
Cities around the world are making a shift into more energy efficient buses like EV’s as cities aim to reduce their carbon footprint. An example of greater adoption of EV’s is the city of Toronto. According to electrive.com, the Toronto Transit Commission is set purchase a total of 300 electric buses which is set to be operational in 2023 – 2025. The 300 electric buses do not come cheap as the TTC is expected to be spending approximately $300 Million on the new fleet. Seeing this kind of budget being allocated to the implementation of electric city buses is a great example of what purchase orders with a city or state could look like VMC.
We’re looking forward to what Vicinity Motor Corps second quarter will look like and the company’s anticipated uplisting to the Nasdaq in the near future, both of which are catalysts investors should keep their eye on!
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