Greenpower Motor Company Inc. ($GP) is catching the attention of a large audience on the stock market today after the stock rose 25% earlier today. The Canadian electric vehicle manufacturer announced Friday afternoon that it has signed a major agreement to sell a range of electric school buses. The stock has risen nicely with a significant amount of $2.64, which equates to a current value of around $15.24.
The deal is with the Thermalito Union Elementary School District in California and will be handled through Creative Bus Sales, the company’s national distributor. It contains a total of six electric BEAST school buses with a type D battery that can cover a total distance of 240 kilometers thanks to a 194.5 kWh battery pack. The agreement is important to Greenpower Motor, because California wants to realize a transition in which emission-free transport is the purpose. As the company has agreements and partners in this state and is a leading manufacturer and distributor of zero-emission electric vehicles, there appears to be more in the pipeline for the time to come.
GreenPower Motor hit the green zone last Friday, showing a positive trend and closing out at $24.02. Thanks to this performance, stocks were previously up 9.76% over the past four weeks. Much more impressive are the 623.18% in the last 6 months and an increase of 566.42% in the last trading year. These are good numbers showing that the market is interested in the company’s future plans and the way it will operate in 2020, despite the pandemic and economic setbacks in the world. Currently, nearly $20 million (8.78%) of the shares are owned by institutional investors.
The news of the electric school buses comes at a highly strategic time as GreenPower Motor is actively participating in the Fall Investor Summit from November 16-18. The Fall Investor Summit is a virtual independent conference of 75 companies and more than 300 institutional and private investors. It seems to want to continue to increase its efforts with this. Something that has not changed since its recent IPO in August. It wants to create more relationships, significantly increase its production in 2021 and encourage repeat orders.
The IPO allows the company to invest more than $38 million in its development plans. In particular, it should speed up production and make deliveries more efficient. In addition, profitability also lies in lowering costs and improving conditions with suppliers. It now wants to grow from 21 buses in the fiscal second quarter to a company that will soon build hundreds of vehicles. Greenpower Company has previously hinted that it has approximately 100 orders to produce EV star minibuses and 10 BEAST school buses. That could mean a huge increase in quarterly sales. The fiscal two quarter generated $2.8 million in revenue, but could now reach a potential quarterly revenue of around $8 million.
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.