Pacific Trader: How GreenPower Motor beat the green investing blues

The electric bus and truck manufacturer is quietly ramping up sales

The stock: The electric vehicle market is a crowded trade ripe for a shakeout, and green investing generally is out of favour. Research by Morningstar indicates Canadian investors pulled $22.4 million out of sustainable mutual and exchange-traded funds (ETFs) in the third quarter, the first net outflow in three years. So how has Vancouver-based GreenPower Motor Company (TSXV:GPV, NASDAQ:GP) managed to post a 57-percent gain so far this year after closing at $3.80 on the TSX Venture Exchange Dec. 12?

The drivers: Despite taking an almost artisanal approach to manufacturing its electric minibuses and cargo trucks at factories in California and West Virginia—it’s made just 162 vehicles in the last six months—GreenPower’s US$26 million in revenue over the first half of fiscal 2024 represents a 125-percent jump over the year previous. The startup’s net loss for the period, meanwhile, shrank to US$7 million.

The lion’s share of that sales growth is coming from school bus fleets; the company just announced its first sales into the New York market through its dealer Leonard Bus Sales. In the latest quarter GreenPower also delivered the first of what it hopes will be many airport ground support vehicles, which is in service refuelling aircraft at the Vancouver International Airport.

GreenPower has been strategic about keeping its supply chain onshore, making it compliant with Buy America subsidies for EV purchases. Its smaller school buses, delivery trucks and shuttles are all built on a common EV Star cab and chassis with a range of 240 kilometres.

Word on the street: Of the four analysts covering GreenPower, three have a “buy” recommendation and one, a “hold”. The median 12-month price target is US$6, implying a 106-percent gain. The editorial team from website Simply Wall St. projects “breakeven on the horizon,” sometime in 2026.

Coming and going: Arras Minerals (TSXV:ARK) has entered into a strategic alliance with minority shareholder Teck Resources (TSX, NYSE:TECK) to explore for critical minerals including copper at some of its properties in Kazakhstan. Teck will fund “generative exploration” through 2025 to the tune of US$5 with an option to up its stake thereafter. Both companies are based in Vancouver.