The Lion Electric Company

Q3 revenue was $30.6 million. Gross margin was negative $16 million, versus negative $19.5 million last year, and SG&A was $13.1 million, down $3.7 million year over year and down $1.6 million from Q2. CapEx was $400,000, down approximately $16 million from last year, and R&D was $6 million, down approximately $9 million from last year. Deliveries were 89 vehicles, including 71 buses and 18 trucks. As of September 30, available liquidity was approximately $27 million. Inventory decreased by $15 million in Q3 and $35 million for the first nine months of 2024, with a full-year objective now to reduce inventory by approximately $50 million. The order book stood at 1,590 vehicles as of November 6, representing about $420 million in value. Management did not provide formal revenue or EPS guidance; instead, it said the focus is on preserving liquidity, improving the balance sheet, and positioning for 2025, while continuing to work on financing, lender relief, and subsidy-related collections.

Marc Bedard framed the quarter as one of aggressive operational triage to preserve liquidity and build a more sustainable cost structure. He highlighted headcount reductions, batch-size manufacturing, facility subleasing efforts, and plans to sell battery packs to third parties starting in 2025. His tone was cautious but not defeatist: he acknowledged the going-concern note and multiple headwinds, while saying the company is still working through financing options and sees recent constructive movement in EPA and ZETF discussions.

Richard Coulombe emphasized that lower unit sales and higher manufacturing unit costs weighed on profitability in Q3. He cited $30.6 million of revenue, negative $16 million gross margin, $13.1 million of SG&A, $400,000 of CapEx, and $6 million of R&D, and said these reflect both softer volumes and cost-cutting progress. On liquidity, he said available liquidity was about $27 million at September 30, inventory fell $15 million in the quarter, and the 2024 inventory-reduction target has been revised to about $50 million from $50 million to $75 million previously. He also noted covenant relief was extended through November 15 and that the company is discussing financing alternatives and the maturity of the Finalta CDPQ loan.

Analysts focused on three issues: the potential impact of a new U.S. administration on electric-vehicle subsidies, the treatment of the 515 ZETF-related units removed from the order book, and pricing versus EPA subsidies and the path to near-term deliveries and liquidity. Management said it is too early to know the policy impact, but pointed to the EPA Clean School Bus program and state-level incentives as supportive. On the 515 units, management said they were not customer cancellations; they were removed because Lion is estimating what can be delivered under the current March 2026 timeline, and the company hopes to work with customers to bring some of that business back. On liquidity and deliveries, management declined to discuss specific financing timing or subsidy timing, reiterating only that it is working with lenders and exploring ways to strengthen the balance sheet.