All-electric powertrains and commercial vehicles provider Lightning eMotors (ZEV) and Collins Bus, a subsidiary of REV Group (REVG), have signed an agreement to produce and deploy zero-emission, all-electric Type A school buses.
Collins Bus has deployed over 70,000 buses across the U.S. and Canada during the last 50 years. Lightning eMotors offers sustainable and specialized fleet solutions for commercial fleets like Class A motor coaches, Class 7 city buses, Class 6 work trucks, school buses, Class 4 and 5 cargo vans and shuttle buses and Class 3 cargo and passenger vans.
The Type A school buses will weigh 14,500 pounds and feature NMC batteries using battery thermal management and safety systems. These buses will support both Level 3 DC fast charging and Level 2 AC charging and have integrated vehicle-to-grid (V2G) capabilities. They will also be equipped with a digital-dash display, advanced telematics, hill-hold functionality, analytics, and a mobile application.
The Chief Revenue Officer at Lightning eMotors, Kash Sethi, said, “The environmental and health benefits were always a no-brainer. With predictable routes, dedicated overnight parking at school bus depots, fuel and maintenance savings, all-electric school buses now make a lot of operational and financial sense as well. We are excited to partner with Collins and look forward to working with their nationwide dealer network to lead the school bus industry towards a zero-emission future.”
The companies have already started the production of the first batch of all-electric Collins school buses, which feature Lightning’s EV technology. These buses are likely to be delivered to school districts and dealerships in the fall. (See Lightning stock chart on TipRanks)
Lightning eMotors’ shares gained 4.6% on Tuesday but fell 1.8% in after-hours trading to finally close at $8.89.
On August 19, Benchmark Co. analyst Michael Ward maintained a Buy rating on the stock but lowered the price target to $14 from $17 (54.7% upside potential).
Following the release of the second-quarter financial results, the analyst said, “The global chip shortage has disrupted production and pushed out 2021-22 revenue assumptions.”
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys and 1 Sell. The average Lightning eMotors price target of $13.20 implies 45.9% upside potential. The company’s shares have lost 34.5% over the past six months.
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