Today’s traders are roaring about Lion Electric (NYSE:LEV) stock, and for a good reason. Apparently, Lion Electric has received government funding to build clean-energy school buses. That endeavor took a big step forward today, as Lion Electric just delivered its first LionC zero-emission school bus.
Based in Canada, Lion Electric manufactures all-electric commercial urban trucks as well as all-electric buses and minibuses. These electric vehicles (EVs) are designed to be used by schools as well as para-transit and mass-transit systems.
Lion Electric is a relatively small company. Yet, it’s trending now because Lion Electric delivered a LionC school bus to Maine’s Mount Desert Island Regional School System.
It’s just one school bus, but it represents a significant event. Lion Electric manufactured that bus at its recently opened factory in Joliet, Illinois. That facility, according to Lion Electric, is “expected to be able to produce up to 20,000 medium and heavy-duty vehicles annually.”
What’s Happening with LEV Stock?
Clearly, today’s traders are pleased with the news of the LionC school bus delivery. They pushed LEV stock 5% higher this morning, taking it close to the crucial $2 level.
Don’t be surprised if Lion Electric gets a lot of attention in the coming year. Lion Electric’s trailing 12-month price-to-earnings (P/E) ratio of 5.9x could entice value investors.
Moreover, Lion Electric has support from the U.S. government. Specifically, the U.S. Environmental Protection Agency (EPA) provided funding for the first LionC bus through the Clean School Bus Program.
If the Joliet production plant can actually roll out up to 20,000 fully electric school buses, Lion Electric could enjoy a significant revenue stream in 2023. Along with the LionC bus delivery in Illinois, Lion Electric has also provided buses in Kansas and Northern California.
Just maybe, Lion Electric will dominate the niche field of electrified school buses in certain regions of North America. If so, LEV stock could propel higher — and enterprising investors might want to get on the bus now.
On the date of publication, David Moadel did not have (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.