Shares of Vicinity Motor (NASDAQ:VEV) are surging higher after the company announced that it had commenced deliveries of its VMC 1200 Class 3 electric truck. In another boost to VEV stock, Vicinity also announced that advance orders were higher than expected.
The company has a goal of becoming the largest North American manufacturer of mid-sized buses. Using electricity instead of gas aids in its goal of creating more sustainable and efficient transportation.
CEO William Trainer added:
The VMC 1200 will help British Columbia and Canada become leaders in the EV sector, while supporting ambitious government targets for net-zero transportation, local job growth, and economic diversification. With the 1200 recently qualifying for Transport Canada’s $550-million subsidy program for medium-duty zero-emission vehicles, it has only become more appealing to commercial transportation operators seeking to reduce costs, eliminate carbon emissions, and run more efficient fleets.
VEV Stock: Vicinity Begins Deliveries of the VMC 1200 Truck
With Level 2 charging, the VMC 1200 can fully charge in five to seven hours. With Level 3 charging, a full charge can be achieved in 2.5 hours using a CCS1 combo plug. Furthermore, a single charge can provide up to 150 miles of range. As a truck designed for commercial and industrial transportation, the VMC 1200 will be able to carry a payload of up to 5,500 lbs.
Trainer added that the VMC 1200 would mark the first zero emission Class 3 truck that sells at a “competitive price point” for commercial purposes. By 2030, he expects inventories of North American light-and medium-duty electric vehicles (EVs) to reach one million. By 2040, that figure is expected to increase to six million.
Besides the VMC 1200, Vicinity also offers the Optimal E1 Electric Chassis. The Optimal is built in collaboration with Optimal-EV and offers a range of up to 125 miles. Level 1 and 2 charging will provide a full charge in less than eight hours. With Level 2 direct current charging, a full charge can be achieved in less than two hours. Vicinity has already received an order for over 150 Optimal E1s from Olathe that had an order value of over $19 million.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.