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EV Roundup: GP & FUV's Quarterly Results and Other Updates
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Last week, U.S. President Biden signed the sweeping climate change bill into law. The bill — also called the Inflation Reduction Act (IRA) — is the boldest climate legislation in U.S. history. The landmark bill seeks to allot around $370 billion toward clean energy initiatives to turbocharge decarbonization efforts.
To encourage the adoption of electric vehicles (EV), the IRA includes a $7,500 tax credit till 2032 on the purchase of a new EV. Importantly, the tax credit will be sans the 200,000-car cap. In the current scenario, the tax credit phases out once a company has reached the 200,000 EV sales mark. The updated EV tax credit would remove that cap at the start of 2023. Beginning next year, the vehicles of these auto giants will again become eligible for a tax credit as long as they are manufactured in North America and meet the raw material sourcing requirements.
There’s also a new $4,000 credit on used EVs, which are priced at $25,000 or less. But to be eligible for the tax credit for a used vehicle, the gross annual income of a family should not exceed $150,000 (for joint tax filers) or $75,000 (for individual tax filers). For the new vehicles to qualify for tax credits, the sticker price for sedans should be below $55,000. Meanwhile, SUVs, trucks and vans should not be costing more than $80,000. To qualify for the new EV credit, buyers’ taxable income will be capped at $150,000 if they are single filers or $300,000 for joint filers.
On the news front, Green Power Motor (GP - Free Report) and Arcimoto (FUV - Free Report) unveiled their quarterly results, wherein both the EV players incurred wider-than-expected losses. Meanwhile, in a path-breaking development, legacy automakers Ford (F - Free Report) , General Motors (GM - Free Report) and BMW (BAMXF - Free Report) collaborated with SMUD for EV charging.
Last Week’s Key Stories
Green Power incurred first-quarter fiscal 2023 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. Also, the figure was wider than the year-ago quarter’s loss of 11 cents a share. Revenues surged 29% year over year to $3.85 million but missed the Zacks Consensus Estimate of $6 million. Region-wise, the United States registered revenues of $3.6 million, rising from $2.6 million in the year-ago period. The Canada unit recorded revenues of $161,450, falling from $323,900.
During the quarter, GreenPower delivered its first five 22’ cargo vans. Currently, it has nearly 40 EV Star Cargos in finished goods inventory.Cash and restricted cash at the end of the quarter was $5.4 million, down from $9.1 million at the end of the year-ago quarter. Cash flow used in operating activities was $2.4 million compared with $1.2 million in the corresponding quarter of fiscal 2022. As of Jun 30, 2022, the company’s line of credit had a credit limit of up to $8,000,000.
Arcimoto incurred second-quarter 2022 loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 33 cents. Also, the figure was wider than the prior-year quarter’s loss of 23 cents a share. Revenues skyrocketed 109% year over year to $1.5 million, surpassing the Zacks Consensus Estimate of $1 million. The company reported a gross loss of $4.6 million in the quarter, wider than the year-ago loss figure of $2.5 million.
Total inventory amounted to $11.4 million as of Jun 30, 2022, increasing from $7.8 million as of Dec 31, 2021. Research and development expenses shot up to $3.7 million from $2.6 million a year ago. General and administrative expenses went up to $3.8 million from $2.6 million. Total operating expenses during the quarter was $10 million, jumping from $6.8 million in the comparable quarter of 2021. Cash and cash equivalents came to $5 million as of quarter-end, falling significantly from $16 million in the year-ago quarter.
Ford, General Motors and BMW announced a new managed EV charging pilot program in partnership with SMUD, the sixth-largest not-for-profit electric service provider. The new charging program will save EV customers money on utility costs to promote a balanced energy grid. SMUD is a leading player in the clean energy space. It strives to reduce carbon dioxide content and aims to reach zero carbon emissions for its power supply by 2030 under its Zero Carbon Plan.
SMUD is tasked to see if the new pilot program can help Sacramento-based EV users find the optimal time to charge their vehicles during the day. Per the agreement, F, BMW and GM will create custom charge requests by providing an optimal charging schedule for EV owners to charge their vehicles in their suitable time slots. All three automakers are focused on their electrification initiatives, and thereby the venture complements their vision.
Image: Bigstock
EV Roundup: GP & FUV's Quarterly Results and Other Updates
Last week, U.S. President Biden signed the sweeping climate change bill into law. The bill — also called the Inflation Reduction Act (IRA) — is the boldest climate legislation in U.S. history. The landmark bill seeks to allot around $370 billion toward clean energy initiatives to turbocharge decarbonization efforts.
To encourage the adoption of electric vehicles (EV), the IRA includes a $7,500 tax credit till 2032 on the purchase of a new EV. Importantly, the tax credit will be sans the 200,000-car cap. In the current scenario, the tax credit phases out once a company has reached the 200,000 EV sales mark. The updated EV tax credit would remove that cap at the start of 2023. Beginning next year, the vehicles of these auto giants will again become eligible for a tax credit as long as they are manufactured in North America and meet the raw material sourcing requirements.
There’s also a new $4,000 credit on used EVs, which are priced at $25,000 or less. But to be eligible for the tax credit for a used vehicle, the gross annual income of a family should not exceed $150,000 (for joint tax filers) or $75,000 (for individual tax filers). For the new vehicles to qualify for tax credits, the sticker price for sedans should be below $55,000. Meanwhile, SUVs, trucks and vans should not be costing more than $80,000. To qualify for the new EV credit, buyers’ taxable income will be capped at $150,000 if they are single filers or $300,000 for joint filers.
On the news front, Green Power Motor (GP - Free Report) and Arcimoto (FUV - Free Report) unveiled their quarterly results, wherein both the EV players incurred wider-than-expected losses. Meanwhile, in a path-breaking development, legacy automakers Ford (F - Free Report) , General Motors (GM - Free Report) and BMW (BAMXF - Free Report) collaborated with SMUD for EV charging.
Last Week’s Key Stories
Green Power incurred first-quarter fiscal 2023 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. Also, the figure was wider than the year-ago quarter’s loss of 11 cents a share. Revenues surged 29% year over year to $3.85 million but missed the Zacks Consensus Estimate of $6 million. Region-wise, the United States registered revenues of $3.6 million, rising from $2.6 million in the year-ago period. The Canada unit recorded revenues of $161,450, falling from $323,900.
During the quarter, GreenPower delivered its first five 22’ cargo vans. Currently, it has nearly 40 EV Star Cargos in finished goods inventory.Cash and restricted cash at the end of the quarter was $5.4 million, down from $9.1 million at the end of the year-ago quarter. Cash flow used in operating activities was $2.4 million compared with $1.2 million in the corresponding quarter of fiscal 2022. As of Jun 30, 2022, the company’s line of credit had a credit limit of up to $8,000,000.
Arcimoto incurred second-quarter 2022 loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 33 cents. Also, the figure was wider than the prior-year quarter’s loss of 23 cents a share. Revenues skyrocketed 109% year over year to $1.5 million, surpassing the Zacks Consensus Estimate of $1 million. The company reported a gross loss of $4.6 million in the quarter, wider than the year-ago loss figure of $2.5 million.
Total inventory amounted to $11.4 million as of Jun 30, 2022, increasing from $7.8 million as of Dec 31, 2021. Research and development expenses shot up to $3.7 million from $2.6 million a year ago. General and administrative expenses went up to $3.8 million from $2.6 million. Total operating expenses during the quarter was $10 million, jumping from $6.8 million in the comparable quarter of 2021. Cash and cash equivalents came to $5 million as of quarter-end, falling significantly from $16 million in the year-ago quarter.
Ford, General Motors and BMW announced a new managed EV charging pilot program in partnership with SMUD, the sixth-largest not-for-profit electric service provider. The new charging program will save EV customers money on utility costs to promote a balanced energy grid. SMUD is a leading player in the clean energy space. It strives to reduce carbon dioxide content and aims to reach zero carbon emissions for its power supply by 2030 under its Zero Carbon Plan.
SMUD is tasked to see if the new pilot program can help Sacramento-based EV users find the optimal time to charge their vehicles during the day. Per the agreement, F, BMW and GM will create custom charge requests by providing an optimal charging schedule for EV owners to charge their vehicles in their suitable time slots. All three automakers are focused on their electrification initiatives, and thereby the venture complements their vision.
Ford, General Motors and BMW carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.