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GreenPower secures follow-on order from Washington University

Published 10/01/2024, 08:46 PM
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LOS ANGELES - GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV), known for its production of zero-emission vehicles, has received a follow-on order from Washington University in St. Louis for 10 EV Star Passenger Vans. These vehicles are slated for use in student transportation across the university's campus.

The recent purchase follows an initial acquisition of five EV Star Passenger Vans by the university over two years ago. The additional vans are expected to enhance the university's commitment to providing sustainable and accessible transport options for its student body.

GreenPower's EV Star Passenger Vans are lauded for their all-electric, zero-emission design, boasting a range of up to 150 miles on a single charge. The vans come equipped with dual charging capabilities and are built on the EV Star Cab & Chassis platform, offering versatility and carrying capacity. Safety features include an electric bus door and rear BraunAbility ADA lifts for wheelchair accessibility. Additionally, Q'STRAINT wheelchair securement positions are included, along with an optional bike rack on each van to support further mobility for students.

Claus Tritt, GreenPower's Vice President of Medium-Duty and Commercial Sales, expressed enthusiasm for the repeat business from Washington University, highlighting the company's commitment to providing safe and environmentally conscious transportation solutions.

GreenPower Motor Company Inc. specializes in the design and manufacture of a range of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, and shuttles. The company emphasizes a clean-sheet design approach, focusing on purpose-built, battery-powered vehicles with zero emissions.

The information in this article is based on a press release statement from GreenPower Motor Company Inc. and reflects the company's ongoing efforts to expand its market presence in the sustainable transportation sector.

In other recent news, GreenPower Motor Company has seen a surge in demand for its electric vehicles, particularly school buses and specialty vehicles. The company's first-quarter earnings report highlighted robust orders, with a sales pipeline consisting of 28 Cab & Chassis vehicles in Canada, 20 EV Star Cargo Plus and passenger vans, and 30 school buses for California and Oregon. GreenPower ended the quarter with nearly $14 million in working capital and approximately $2 million available on its EDC facility.

In addition, GreenPower secured orders for six electric school buses from RWC Group, its Arizona dealer. These orders, funded by the EPA Clean School Bus Program, will serve three different school districts within Arizona. The buses, which include both Type D BEAST and Type A Nano BEAST models, underscore the company's commitment to sustainable student transportation.

Analysts noted that GreenPower anticipates delivering most orders by the end of the year, which is expected to contribute to revenue increases in subsequent quarters. The West Virginia manufacturing facility is also expected to drive gross profit margins higher as production scales up. GreenPower's unique position in the electric school bus market, bolstered by new regulations in California, presents a multibillion-dollar opportunity. These recent developments reflect the growing market for environmentally friendly transportation and GreenPower's strategic efforts to meet this demand.

InvestingPro Insights

While GreenPower Motor Company Inc. (NASDAQ: GP) continues to secure orders for its zero-emission vehicles, as evidenced by the recent follow-on order from Washington University in St. Louis, the company's financial performance presents a mixed picture. According to InvestingPro data, GreenPower's revenue for the last twelve months as of Q1 2025 stood at $24.69 million USD, with a concerning revenue growth decline of -53.79% over the same period.

InvestingPro Tips highlight some challenges facing the company. One tip indicates that GreenPower is "quickly burning through cash," which could be a concern given the capital-intensive nature of the electric vehicle industry. Another tip suggests that the company "suffers from weak gross profit margins," reflected in the reported gross profit margin of 11.3% for the last twelve months.

On a more positive note, GreenPower's stock has shown strong returns over the last month and three months, with price total returns of 52.22% and 31.73% respectively. This recent market performance might indicate growing investor confidence in the company's potential, despite its current financial challenges.

For investors considering GreenPower, it's worth noting that InvestingPro offers 16 additional tips that could provide deeper insights into the company's prospects. These additional tips could be particularly valuable given the company's volatile stock performance and the evolving electric vehicle market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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