Vicinity Motor Corp VEV

Under appreciated value in legacy bus business

[RealVal]

I think VMC’s legacy diesel and CNG powered bus “ongoing biz” is being way under-appreciated and valued relative to it’s contributions of stable revenue as the company builds up it’s ev biz. This last order of 8 diesel busses is probaly worth between 3.5 to 4 mil in revenue and most importantly at a 20% GM that’s 700k to 800k of contribution to cover operating expenses. In 2023 alone they announced a total of 50 non-ev bus sales. At a conservative av. of 350k per bus and 15% Gross Margin that is still 17.5 Mil rev and 2.6 Mil of contribution to op. expenses. To say nothing of the growing parts and service revenue from those busses that have margins more in the 30% range. This ongoing business is a major reason why Vicinity has been able to establish an ev line of busses and trucks without blowing through tens or even hundreds of Millions of dollars like the Proterra’s, lighting emotors and even Lion Electrics have done. To say nothing of fact that those established customer relationships with cities, municipalities, bus transport biz’s make the presenting and selling to these groups ev’s (busses AND trucks) as and when their ready to transition to ev’s much more possible. There is value in this stability that is certainly not being recognized right now, but is nonetheless very valuable for those who do understand it. Hope you all have a great holiday season.

[Pandora]

I think you're right but at this point it appears the big money is just mesmerized by the "electrical" phenomina egged on by the Government using the taxpayers subsidy money.

[subaru1]

Realval, i agree with you. I might be wrong but when i look at the backlog of $150 millions et the capacity of both factory whis is over $900 millions a year, 2024 revenue should be of at least $125 millions and the 4qrt 2023 around $20 millions. I would appreciate very much that some others tells me if you see the same thing. Have a nice holiday everyone.

[RealVal]

Reading tea leaves from the q3 financials q&a responses it seems Q4 2023 sales of the 1200 truck may be dependent on how many of these trucks they hold back to allow for initial inventories for these new dealers they say they are expecting to bring on board in the first quarter of 2024.  The Pioneer PO is there to be fulfilled but depends on that somewhat I think. As regards full 2024