Buy Alert! Lion Electric (TSX:LEV) Stock Up 30% In A Month

Published on June 11, 2021 01:01 PM EDT

Buy Alert! Lion Electric (TSX:LEV) Stock Up 30% In A Month — Image source: SFIO CRACHO,Shutterstock

Stocks of Lion Electric Company (TSX:LEV), an electric vehicle (EV) producer, opened in green on Friday morning, June 11. The stock has gained double-digit price momentum since its listing on the New York Exchange (NYSE) and Toronto Stock Exchange (TSX).

The EV firm’s top line soared by three times year-over-year in the first quarter of 2021 following its merger with the US-based special purpose acquisition company Northern Genesis Acquisition Corp.

Many Bay Street analysts have given this clean stock a buy call on the back of its business expansion in Quebec.

The all-electric urban vehicles maker disclosed on June 3 that its much-awaited battery production site will be built at the International Aerocity, Quebec. The company has invested US$ 400 million to bolster its advanced battery system manufacturing facilities across North America.

Its 10-day average volume has improved to 244,354 shares against its 50-day volume of 139,421 shares.

Let us delve into EV stock’s price movement and financial health:

Lion Electric Company (TSX:LEV)

The Montreal-based EV firm manufactures clean automobiles using its advanced technology.

Lion Electric has a market cap of C$ 4.64 billion. It has gained over 5 per cent to C$ 24.91 apiece in the last one week.

The firm reported delivery of 24 all-electric vehicles, a remarkable growth compared to two EVs delivered in Q1 2020.

Its total revenue grew by US$ 5 million to US$ 6.2 million in Q1 2021, up 416 per cent on a year-over-year (YoY) basis against $1.2 million a year ago.

However, it incurred a net loss of US$ 1.8 million for the quarter, an increase of 64 per cent YoY. The company claims that this loss came on the back of rising expenses in business expansion and hiring of a new workforce to speed up its EV production.

The company has finally entered the US clean vehicle market and stock market to capitalize on its merger with the US-based SPAC company.

The company also deals in assembling vehicles' modules, such as battery units, truck cabins, auto bodies, etc.

In the first quarter of 2020, the company reported total debt of around US$ 12 million. The company has also applied for loans to support clean car subsidies.

Investors could enter this early stage and growing EV firm to earn fantastic returns in the long-term period.

Please note: The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from Refinitiv.

Anuj

Author

Anuj - Financial Journalist
425 Posts
Anuj is a financial journalist with Kalkine Media and writes on Canadian markets. A cryptocurrency enthusiast, Anuj also closely tracks the cannabis industry. His previous stint was with BloombergQuint where he covered financial developments from...
Follow Anuj

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.