Lion Electric loses $17.2 million in the third quarter

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Quebec-based Lion Electric Co. reported a net loss of US$17.2 million in the third quarter of 2022, worse than the year-ago quarter, as it ramps up production capacity.

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“As we are nearing the start of commercial production at both our U.S. manufacturing facility and our battery plant, we are excited by these important milestones, which represent a major step forward in our growth strategy,” said Marc Bédard, chief executive, in a press release.

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“For the fourth quarter in a row, we delivered a record number of vehicles in the history of Lion. This proves that the switch to electrification is happening, today.”

Here’s what you need to know about their earnings for the three-month period ending Sept. 30, 2022:


Revenue at Lion Electric reached US$41 million in the second quarter, up US$29.1 million compared to US$11.9 million in the year-ago quarter.

The increase in revenue was due to an increase in sales volume of 116 units, from 40 units in the same quarter last year. But revenues were also impacted by continuing global supply chain issues. The company couldn’t finish assembly of certain vehicles and had excess inventory as a result.

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Diluted net loss per share amounted to nine cents U.S., compared with 60 cents U.S. in the same quarter last year.

The company had an EBITDA loss of US$15.1 million in the third quarter, worse than the EBITDA loss of US$8.8 million in the year-ago quarter.

As of Nov. 9, 2022, Lion Electric has 2,408 electric medium- and heavy-duty vehicles on their order book.


Supply chain issues slowed the production of certain vehicles in the quarter, but management remains optimistic the worst is behind them. “We continue to see improvements as compared to the peak of the pandemic,” Bédard said, though he expects issues to persist through 2023.

Meanwhile, construction continues on its factory in Joliet, Ill., which will impact profit margins. “For the foreseeable future, gross margins should continue to reflect the significant investment we are making to ramp up production,” said Nicolas Brunet, chief financial officer. “Over the long term, as we scale production, we expect margins to improve.” The company is aiming for a manufacturing capacity of 5,000 school buses at the new Joliet facility, and produced its first made-in-America school bus at the factory in the third quarter.

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Bédard said government emphasis on the green transition bodes well for the company. In October, for example, the U.S. Environmental Protection Agency committed funding toward clean school buses. “Increasing level of government incentives, and the growing number of companies committing to electrifying their fleets, should further accelerate the transition of the commercial vehicle segment,” he said. “We are optimally positioned to respond to the expected surge in demand.”


Lion Electric got an earnings boost in the previous quarter from Canadian government subsidies on medium- and heavy-duty vehicles. Its electric trucks are eligible for “stackable” government subsidies of $100,000 and up, putting the price of Lion trucks almost on par with its gas-powered competitors.

In August, the company celebrated the passage of the U.S. Inflation Reduction Act, which allocates US$60 billion for clean transport and US$1 billion for green heavy-duty vehicles, calling it a “turning point in history” on Twitter.

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