Lion Electric’s revenue climbed in the first quarter of 2023, as did the number of its battery-electric vehicles. But financial losses also increased for the Saint-Jerome, Que.-headquartered manufacturer.
The business reported $54.7 million in revenue, up $32.1 million over the three months ending March 31, as compared to $22.6 million in the first quarter of 2022. Lion said it also delivered 220 vehicles, an increase of 136 vehicles, as compared to the 84 delivered in the same period last year.
“We are pleased with our Q1 2023 performance, as we increased the number of vehicles delivered for the sixth quarter in a row,” Marc Bedard, CEO and company founder said in a news release. “With manufacturing operations at both our Joliet vehicle plant and our battery factory now underway, we are focused on achieving profitability and are putting the right elements in place to achieve this objective.”
But profits are not yet in sight. Lion revealed a loss of $15.6 million, as compared to net earnings of $2.1 million in the first quarter last year.
2,565 vehicles on order book
Lion has 2,565 all-electric medium- and heavy-duty urban vehicles on its order book as of May 8, consisting of 295 trucks and 2,270 buses, representing a combined total order value of approximately $625 million based on management estimates.
Meanwhile, Q1 sales costs amounted to $57 million, representing an increase of $33.4 million compared to $23.6 million in the corresponding period in the prior year.
Lion said the increase was due to increased sales volumes and higher production levels, increased fixed manufacturing and inventory management system costs related to the ramp-up of future production capacity, higher raw material and commodity costs, and the impact of continuing global supply chain challenges and an inflationary environment.