The Lion Electric Co stock (CA53044R1064): quarterly loss widens as demand shifts in electric bus market

The Lion Electric Co has reported weaker quarterly figures while continuing to ramp up its new Joliet plant. Investors are watching cash burn, order intake and the North American school bus market as the electric vehicle player adapts to a tougher demand environment.

The Lion Electric Co, a Canadian specialist for electric school buses and trucks listed in New York and Toronto, has recently posted weaker quarterly results while continuing to scale operations at its manufacturing plant in Joliet, Illinois, according to the company’s earnings release published on 05/08/2024 for the first quarter of 2024 and subsequent updates on its investor relations site, as reported by Lion Electric IR as of 05/08/2024 and noted in a market summary by Reuters as of 05/09/2024.

As of: 17.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: The Lion Electric Company
• Sector/industry: Commercial electric vehicles, especially school buses and medium- to heavy-duty trucks
• Headquarters/country: Saint-Jérôme, Canada
• Core markets: North American school bus and vocational truck fleets
• Key revenue drivers: Sales of electric school buses, trucks and related services
• Home exchange/listing venue: New York Stock Exchange and Toronto Stock Exchange (ticker: LEV)
• Trading currency: USD in New York, CAD in Toronto

The Lion Electric Co: core business model

The Lion Electric Co focuses on designing and manufacturing all-electric school buses, minibuses and urban trucks for the North American market. The company positions itself as a vertically integrated producer, with in-house development of vehicle platforms and key components such as chassis and battery systems, according to its corporate overview updated in 2024 on its website Lion Electric website as of 03/15/2024.

Its business model centers around selling vehicles to school districts, transit operators and commercial fleet customers that are transitioning from diesel vehicles to zero-emission options, often supported by federal or state incentives. Lion Electric emphasizes total cost of ownership benefits from lower fuel and maintenance costs, while customers often rely on grants or subsidies to offset higher upfront prices, as outlined in its 2023 annual report published on 03/07/2024, according to Lion Electric annual filing as of 03/07/2024.

Beyond vehicle sales, Lion Electric is building recurring revenue streams through after-sales services such as maintenance, training and telematics. It also offers charging infrastructure solutions and consulting for fleet electrification, which aim to deepen customer relationships and create additional revenue per vehicle fleet over time, based on information set out in its investor presentation updated in late 2024, as referenced by Lion Electric IR deck as of 11/14/2024.

The company’s manufacturing footprint includes a bus and truck plant in Saint-Jérôme, Quebec, and the Joliet facility in Illinois, which is described as one of the largest dedicated electric school bus manufacturing plants in North America. Management aims to ramp up Joliet production to address US demand and maximize eligibility for US-based incentives, especially funding under federal and state clean school bus programs, according to Lion Electric IR as of 07/21/2023.

Main revenue and product drivers for The Lion Electric Co

The bulk of Lion Electric’s revenue currently comes from electric school buses sold to public and private operators in the United States and Canada. In its results for the full year 2023, released on 03/07/2024, the company reported revenue of approximately 253 million USD for 2023, up from around 201 million USD in 2022, with the growth primarily driven by higher volume of vehicles delivered, according to Lion Electric IR as of 03/07/2024.

Despite revenue growth, Lion Electric has continued to report net losses as it ramps up operations and invests in product development. For 2023, the company disclosed a net loss of about 139 million USD, similar in magnitude to the prior year, reflecting high operating expenses, manufacturing ramp-up costs and financing charges, based on the same 2023 results release published on 03/07/2024, as noted by Reuters as of 03/07/2024.

Vehicle deliveries are a key operational metric for Lion Electric. The company stated that it delivered 852 vehicles in 2023, compared with 519 in 2022, with school buses representing the majority of units. Medium- and heavy-duty trucks form a smaller but growing share of volumes, and management sees potential in applications such as last-mile delivery and urban vocational fleets, according to the 2023 results release on 03/07/2024 reported by Lion Electric IR as of 03/07/2024.

Order backlog and new orders are another important driver for future revenue. Lion Electric reported a vehicle order book of more than 2,000 units as of the end of 2023, including firm orders and letters of intent, although management acknowledged that some orders are subject to customer financing and grant approvals. The company also highlighted awards under the US Environmental Protection Agency’s Clean School Bus Program in 2023 and 2024, which support electrification of school bus fleets and could translate into future deliveries, according to Lion Electric IR as of 10/19/2023.

On the cost side, the transition toward in-house battery pack production at its Mirabel, Quebec facility is a strategic lever. Lion Electric has said that vertical integration in batteries is expected over time to reduce cost per kilowatt hour and support margins, though the ramp-up initially adds to capital expenditures and operating losses, according to management comments in its first quarter 2024 earnings call on 05/08/2024, as summarized by Morningstar as of 05/08/2024.

Conclusion

The Lion Electric Co is seeking to build a leading position in the North American market for electric school buses and urban trucks, supported by policy incentives and a growing focus on zero-emission transport. Recent financial results underline the tension between scaling up production and achieving profitability, with continued net losses and a need to manage cash burn carefully. For US investors, the dual listing on the NYSE and the company’s manufacturing presence in Joliet, Illinois, highlight its direct exposure to US demand and regulatory frameworks. Future developments in order intake, funding programs and cost control are likely to play an important role in determining the company’s long-term trajectory.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.