LION ELECTRIC ANNOUNCES SECOND QUARTER 2024 RESULTS

Core Insights - The Lion Electric Company reported a significant decrease in revenue for Q2 2024, amounting to $30.3 million, down $27.7 million from $58.0 million in Q2 2023, primarily due to a reduction in vehicle sales volume [33][36] - The company experienced a gross loss of $15.2 million in Q2 2024, compared to a gross profit of $0.4 million in the same quarter of the previous year, attributed to increased manufacturing costs and lower sales volume [33][43] - The net loss for Q2 2024 was $19.3 million, an increase from a net loss of $11.8 million in Q2 2023, reflecting higher finance costs and gross losses [33][50] Order Book and Vehicle Deliveries - As of July 30, 2024, the vehicle order book consists of 1,994 all-electric medium- and heavy-duty urban vehicles, with a total order value of approximately $475 million [2][19] - The company delivered 101 vehicles in Q2 2024, a decrease of 98 vehicles compared to 199 delivered in Q2 2023, impacted by delays in governmental subsidies and production challenges [33][36] - The order book includes 394 charging stations with a total order value of approximately $9 million, indicating ongoing expansion in charging infrastructure [2][19] Financial Performance - For the six months ended June 30, 2024, the company reported a gross loss of $26.4 million, an increase from a gross loss of $1.8 million in the same period of 2023, driven by higher manufacturing costs [6][50] - Administrative expenses decreased to $22.1 million for the six months ended June 30, 2024, down from $25.5 million in the prior year, reflecting cost reduction initiatives [44] - Finance costs surged to $12.3 million in Q2 2024, up from $2.0 million in Q2 2023, primarily due to higher interest expenses on long-term debt [8][50] Operational Updates - The company has 12 experience centers operational in the U.S. and Canada, enhancing customer engagement and product visibility [2] - The commercial launch of the Lion8 Tractor truck occurred at the ACT conference in May 2024, marking a significant product introduction [2] - The company is focused on streamlining operations and aligning its cost structure with current demand through an action plan announced on July 31, 2024 [34]