The following is a summary of the The Lion Electric Company (LEV) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 revenue was $30.6 million, facing a decline driven by lower unit sales and increased unit costs.
Notable negative gross margins reported at -$16 million.
Decreased SG&A expenses year-over-year by $3.7 million and a reduction over Q2 by $1.6 million, reflecting cost-cutting measures.CapEx greatly reduced to $400,000, down by approximately $16 million from last year.
Business Progress:
Deployed significant efforts towards improving liquidity and sustainability, including implementing headcount reductions, batch size manufacturing, and initiatives to sublease facilities.
Advanced the vehicle development, particularly with LionD and Lion5 models and integrating Lion batteries.
Maintained leadership in electric truck market while focusing on cost structure for future position enhancement.
Opportunities:
Positive movements in EPA and ZETF programs, with potential growth in the electric school bus segment.
Achieved milestone of over 32 million miles driven by Lion vehicles.
Announced plans to sell battery packs to third parties starting 2025.
Risks:
Uncertainty regarding the ability to continue as a going concern without additional funding.
Immediate challenges in cash flow and liquidity affecting the production cadence and revenue generation.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
