Investors looking to get exposure to the electric vehicle market should be thinking about all-electric bus manufacturer GreenPower Motor (GreenPower Motor Stock Quote, Chart, News TSXV:GPV).
That’s according to researcher and author of the Sustainable Economist, Tim Nash, who says that the stock could catch fire with new contract wins for the company.
“I really like the technology,” said Nash, founder of Good Investing, who spoke to BNN Bloomberg last Friday. “I don’t own it. I would be very cautious about the percentage in the portfolio — have a very small allocation just because it’s going to be more volatile, smaller stock. But I love the technology, and if municipalities had more money to invest in efficient vehicles, I could see this doing well.”
“I’ve seen [electric] school buses and shuttles — to me, school buses are a no-brainer for this because one of the big issues when it comes to electric vehicles is the barriers to battery technology, so they can’t go super long distances. But school buses sit idle for so long. They have two trips per day and then they just sit around, so they’re kind of perfect as long as the range is available there,” Nash says.
Vancouver-based GreenPower completed a reverse takeover of mining company Oakmont Minerals in 2014, making its way onto the TSX Venture exchange in the process. Over the years, the micro cap stock has traded between C$0.20 and C$1.00 and is currently sitting up three per cent year-to-date but down 17.5 per cent for the past 12 months.
Last week, GreenPower delivered its latest quarterly financials, reporting revenue for its Q1 ended June 30, 2019, of $2.4 million versus $2.5 million a year prior and a consolidated net loss of $1.3 million or $0.01 per share. (All figures in US dollars unless where noted otherwise.) GreenPower is still in the scaling-up stage and has yet to reach profitability. The company closed on an equity financing round for $4 million in May to help fund its expansion plans.
The company’s revenue from vehicle sales and leases for the quarter came from the sale of one of its EV 350 buses and five of its EV Stars shuttles, with contracts ongoing with Sacramento Regional Transit, SanDiego Airport Parking Company and the municipality of Porterville, California, where GreenPower has a manufacturing facility. GreenPower finished the quarter with $7.9 million of inventory, with 88 all-electric buses currently in production, a record for the company which has also filed an application to up-list to the NASDAQ exchange.
“The Company continued to execute on its previously stated goals during the quarter as we increased the utilization of our manufacturing facilities in California, raised $4 million in an equity financing to fuel top line growth, and significantly increased production,” said Fraser Atkinson, Chairman and CEO, in the company’s quarterly press release. “Moving forward, we remain optimistic about the company’s prospects as we are focused on ramping up vehicle deliveries, rapidly scaling the business, improving our financial position and continue to work towards uplisting to the NASDAQ stock exchange later this year.”