VANCOUVER - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles, announced today that its VMC 1200 class 3 electric truck has been certified by the California Air Resources Board (CARB) as a zero-emission vehicle for the 2024 Model Year. The certification enables the VMC 1200 to be sold in all U.S. states, including those that have adopted CARB standards.
The CARB certification also qualifies the VMC 1200 for various state incentive programs, including California's HVIP, which offer monetary vouchers to reduce the purchase cost of commercial electric vehicles. This development allows Vicinity to finalize U.S. dealer relationships and sell the VMC 1200 across the United States, as stated by Brent Phillips, President of Vicinity Motor Corp.
Phillips expressed enthusiasm for the certification, noting the company's position to capitalize on the commercial electric vehicle market as it moves ahead of competitors still in the pre-production phase. He emphasized the company's focus on operational execution to deliver value for shareholders.
Vicinity Motor Corp. operates in North America, providing electric vehicles for public and commercial use. The company leverages its dealer network and partnerships with manufacturing partners to supply its electric, CNG, and clean-diesel buses, in addition to the VMC 1200 electric truck.
This news is based on a press release statement from Vicinity Motor Corp.
In other recent news, Vicinity Motor Corp. has seen a significant boost in its business affairs. The company reported a robust 400% surge in revenue for the first quarter of 2024, with a positive cash flow from operations. This was largely due to the delivery of 44 VMC 1200 electric trucks and 22 Vicinity Classic clean diesel buses. Despite a net loss of $3.7 million, the company's gross profit reached $1.9 million.
In further developments, Vicinity Motor Corp. has appointed Jeff Madura as Senior Director of Sales, a move that underscores the company's efforts to expand its market share in the commercial electric vehicle sector.
Additionally, Vicinity Motor Corp. showcased its VMC 1200 Class 3 Electric Truck at the Advanced Clean Transportation Expo. These recent developments highlight the company's active engagement in expanding its market presence and contributing to the growing demand for electric vehicles in North America.
InvestingPro Insights
As Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) gears up to expand its footprint in the U.S. commercial electric vehicle market following the CARB certification of the VMC 1200, the company's financial health and market performance provide a mixed picture. According to InvestingPro data, Vicinity has a market capitalization of $14.74 million and has experienced a robust revenue growth of 65.18% over the last twelve months as of Q1 2024. This growth is indicative of the company's expanding operations and market reach.
However, it's clear that challenges remain. The company operates with a significant debt burden and has been quickly burning through cash, as highlighted by two InvestingPro Tips. These issues underline the importance of strategic financial management as Vicinity seeks to navigate a competitive industry landscape and scale up its operations. Additionally, with a P/E Ratio (Adjusted) of -1.05 and a P/E Ratio of -0.8, the company's profitability is in question, as analysts do not anticipate Vicinity will be profitable this year.
For investors considering Vicinity Motor Corp.'s potential, there are 16 additional InvestingPro Tips available at https://www.investing.com/pro/VEV, offering deeper insights into the company's financials and market performance. Prospective investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to a wealth of data and analysis to inform their investment decisions.
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