GPV and VMC: 2 TSXV EV stocks to see as Canada invests in Honda plant

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GPV and VMC: 2 TSXV EV stocks to see as Canada invests in Honda plant

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GreenPower (GPV) & VMC: 2 TSXV stocks to buy
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Highlights
  • The federal and Ontarian governments are each set to invest C$ 131.6 million in a Honda Canada plant in Ontario.
  • This move can impact investors’ interest in EV stocks like GreenPower (TSXV: GPV) and Vicinity (TSXV: VMC).
  • The retooling project was announced by Prime Minister Justin Trudeau and Ontario Premier Doug Ford on Wednesday, March 16.

 

In an effort to boost Canada’s production of hybrid electric vehicles (EV), the federal and Ontarian governments are each set to invest C$ 131.6 million to upgrade a Honda Canada manufacturing plant in Alliston, Ontario.

This move is likely to impact investors’ interest in Canadian EV stocks like GreenPower Motor Company Inc (TSXV: GPV) and Vicinity Motor Corp (TSXV: VMC).

The retooling project, which was announced by Prime Minister Justin Trudeau and Ontario Premier Doug Ford on Wednesday, March 16, is expected to total about C$ 1.4 billion over six years.

With this latest development in Canada’s auto sector, let us glance at two TSXV stocks.

Also read: Is it right time to buy Air Canada (TSX: AC) stock?

 

GreenPower Motor Company Inc (TSXV: GPV)

GreenPower saw its revenue grow by 121.5 per cent year-over-year (YoY) to US$ 5.31 million in Q3 FY2022. However, the junior EV maker incurred a loss of US$ 2.95 million in the latest quarter compared to a loss of US$ 2.13 million in 2020.

GreenPower stocks closed at C$ 7.30 apiece on Wednesday, March 16, marking a nine per cent increase. Its stock plunged by over 78 per cent in the last year.

GreenPower Motor Company Q3 FY2022 results

 

Vicinity Motor Corp (TSXV: VMC)

Vicinity earned a revenue of C$ 2.92 million in Q3 FY2021, down from C$ 8.92 million in the same quarter in 2020. Its net loss widened to C$ 4.79 million in the latest quarter compared to C$ 1.3 million in Q3 2020.

Stocks of Vicinity slipped by nearly 15 per cent in the past one month.

VMC stock was up by over one per cent and closed at C$ 4.08 apiece on Wednesday.

 

Bottomline

Investors interested in EV stocks should ideally keep tabs on the latest developments in the automobile sector as these could bolster the performance of EV companies. It is also vital to have an idea about a company’s growth prospectives before diving into any investment decisions.

Also read: Sun Life (SLF), IFC and GWO: 3 TSX insurance stocks for defensive play

 

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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