Colorado-based Lightning eMotors, Inc. (NYSE: ZEV) and General Motors Co. (NYSE: GM) have signed an agreement under which the former will provide fully electric Class 3 through Class 6 commercial vehicles to the latter.
As per the terms of the agreement, Lightning eMotors will electrify GM’s medium-duty truck platforms at its manufacturing facility in Loveland, Colorado, and ship the completed chassis to commercial vehicle manufacturers.
The CEO of Lightning eMotors, Tim Reeser, said, “GM’s inclusive approach to electrification is a great match for Lightning’s position and role as a leading powertrain supplier in the commercial vehicle space. Commercial vehicles and commercial vehicle powertrains are complex, with thousands of unique components, requiring years of custom software development and on-road testing—and Lightning has products in fleet use today and ready for customers to roll out this year.”
About Lightning eMotors
Lightning eMotors designs, engineers, customizes and manufactures zero-emission medium-duty commercial vehicles and electric vehicle technology for fleets, including Class 3 cargo and passenger vans, ambulances, Class 4 and 5 cargo vans and shuttle buses, Class 4 Type-A school buses, Class 6 work trucks, Class 7 city buses, and Class A motor coaches.
Following the announcement on Thursday, ZEV stock gained 4.8% to close at $4.56. It went up another 1.3% in the extended trading session to end the day at $4.62.
Wall Street’s Take
On February 3, Colliers Securities analyst Donovan Schafer maintained a Buy rating on the stock and lowered the price target to $9 from $11 (97.4% upside potential).
Overall, the stock has a Strong Buy consensus rating based on 3 Buys. The average Lightning eMotors stock price prediction of $13.33 implies 192.3% upside potential. Shares have lost 66.8% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ZEV with 11.3% of investors on TipRanks increasing their exposure to the stock over the past 30 days.
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