Lion Electric

The Superior Court of Quebec has granted Lion Electric protection under the Companies’ Creditors Arrangement Act, allowing the electric vehicle maker to continue operations while restructuring. The company, known for producing EV buses and trucks, will maintain fleet services for customers.

Lion aims to solicit bids for its assets or entire business by January 7, with an auction likely in March. Facing $500M in liabilities and just $26.3M in cash, Lion struggles with the slower-than-expected adoption of EVs. This move may ease concerns for operators relying on its parts and services but raises uncertainty about the company’s future.

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Lion Electric announced it will lay off 300 workers, 30% of its workforce, as it reports a US$19 million Q2 loss. The layoffs, primarily temporary, affect staff in Canada and the U.S. This is the company’s fourth and largest round of layoffs in a year, aiming to save US$25 million annually.

Lion Electric is adjusting truck manufacturing due to lower demand, selling battery packs to third parties, and potentially subleasing part of its Illinois facility. Revenue dropped from US$58 million to US$30.3 million year-over-year. The stock fell over 17% on both the Toronto and New York stock exchanges.

Want to know more? Check out the source code on The Logic.