Lightning eMotors, Inc, (NYSE: ZEV) is engaged as a specialized zero emissions vehicle (ZEV) fleet solutions and technology. Among the ZEV commercial focuses include Class 3 cargo and passenger vans, Class 4 & 5 cargo vans and shuttle buses, Class 6 work trucks, school buses, Class 7 city buses, and Class A motor coaches.
Shares of the commercial ZEV company are surging 66% through early trading on Tuesday, August 10, 2021. Over the past three months, Lightning eMotors, Inc. has seen average daily volume of 543,870 shares. However, volume of 59.67 million shares or dollar volume of $666.51 million, has already exchanged hands through early trading on Monday.
The zero emissions fleet solutions company saw shares soar after the company announced that it has entered into a multi-year agreement with Forest River, Inc., a Berkshire Hathaway company (NYSE: BRK.A), the largest shuttle bus manufacturer in North America. Under the terms of the agreement, Lightning eMotors will deliver fully-electric powertrains, charging products and related services for up to 7,500 zero-emission shuttle buses.
Utilizing Lightning eMotors ZEV solutions and Forest River’s manufacturing capabilities, the strategic partnership will co-produce Class 4 and 5 shuttle buses. The four and a half year agreement has a potential estimated value of up to $850 million.
“This has the potential to be the largest contract ever in the electric shuttle bus market, and we believe it will be the catalyst for other large commercial vehicle OEMs and fleets to accelerate their adoption of commercial electric vehicles,” said Tim Reeser, CEO of Lightning eMotors. “Forest River’s family of shuttle bus companies, including top name brands like Starcraft, Glaval, and Champion, maintain a dominant market position selling over 10,000 units per year in the Class 4 to 6 shuttle-bus space. Forest River’s sales volumes allow us to provide a price point to their dealers and customers that results in a very compelling ROI. We believe this commitment from the largest shuttle bus manufacturer in the U.S. demonstrates that they believe that commercial vehicle customers are now demanding Lightning eMotors’ zero-emission vehicles over ICE vehicles.”
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