For the second trading day in a row, shares of GreenPower Motor Company (NASDAQ:GP) are on a tear.
The electric-bus company reported its fiscal second-quarter 2021 earnings on Thursday after close of trading, and its stock soared 20% on Friday. Today, as of 10:20 a.m. EST, GreenPower is already up 28%.
So what did GreenPower say last week that has given the company's shares such momentum? Since listing its shares on the Nasdaq in an August IPO, GreenPower has "launched a multi-faceted effort to increase production and pursue relationships that can drive repeat orders," says its CEO, Fraser Atkinson.
Historically, GreenPower has produced vehicles in response to "specific customer orders," Fraser said. But now, with $38 million more cash to play with after its IPO, GreenPower "can accelerate production, shorten timelines for deliveries, improve cost and terms from suppliers to support larger purchase orders which will be the drivers for GreenPower to attain profitability."
In all of fiscal Q2, GreenPower delivered just 21 buses to its customers and collected only $2.8 million in revenue. But GreenPower says it has 100 orders in hand to build EV Star minibuses, and 10 all-electric BEAST school buses besides, and is ramping up production to build 20 EV Stars per month, "representing potential quarterly revenue of over $8 million" two quarters from now -- nearly 200% more in sales than it just reported for Q2.
With the prospect of dramatic growth on the horizon, it's no wonder GreenPower Motor investors are excited. Now, let's see if the company can make a profit.