Lion Electric Faces Financial Challenges Amid Revenue Drop

Lion Electric Company ( (LEV) ) has released its Q3 earnings. Here is a breakdown of the information Lion Electric Company presented to its investors.

The Lion Electric Company is a leading manufacturer in the electric vehicle sector, specializing in all-electric medium and heavy-duty urban vehicles. Despite being at the forefront of electric transportation, the company faces significant financial challenges. In its third quarter of 2024 earnings report, Lion Electric reported a substantial drop in revenue to $30.6 million from $80.3 million in the same period last year. The company also delivered fewer vehicles, with 89 units compared to 245 in the previous year, contributing to a gross loss of $16 million. The net loss widened to $33.9 million, up from $19.9 million last year, attributed mainly to lower sales volumes and increased manufacturing costs. Despite these setbacks, the company’s order book remains robust, with 1,590 vehicles and 366 charging stations valued at approximately $428 million. However, the company’s financial position poses a risk to future sales. Looking ahead, Lion Electric’s management remains focused on adjusting cost structures and optimizing operations to maintain its leadership in the electric school bus market, despite ongoing challenges in the industry.