Envirotech Vehicles Announces an Update on $4.3 million Revenue Backlog Related to NJ ZIP Program
Envirotech Vehicles, Inc. (EVTV) announces 43 vehicles on order worth $4.3 million funded by NJ ZIP program. CEO highlights strong interest in green transportation in New Jersey.
The announcement by Envirotech Vehicles, Inc. regarding the secured orders under New Jersey's Zero Emission Incentive Program (NJ ZIP) is a significant development that highlights the increasing demand for zero-emission vehicles in the commercial sector. It is indicative of a broader trend towards green transportation solutions, spurred by both environmental considerations and governmental incentives. The $4.3 million in revenue from these orders represents a substantial addition to the company's sales pipeline and can be expected to positively affect its financial performance in 2024.
From a market perspective, the adoption of zero-emission vehicles is accelerating due to a combination of regulatory pressure, technological advancements and shifting consumer preferences. This trend is particularly pronounced in states like New Jersey, which are actively promoting clean energy initiatives. The NJ ZIP program's financial support for medium and heavy-duty zero-emission vehicles aligns with current market dynamics, where such incentives can significantly lower the barrier to entry for businesses considering fleet modernization.
Analyzing the financial implications of this news, the projected revenue from these orders could improve Envirotech Vehicles' near-term financial outlook and potentially bolster investor confidence. However, it's important to evaluate the company's capacity to fulfill these orders within the stated timeframe and the associated costs. The ability to deliver on these orders as promised will be crucial for maintaining credibility and securing future business under similar incentive programs. Furthermore, investors should monitor the company's margins on these sales, as they could be impacted by the costs associated with scaling up production and potential supply chain challenges.
It is also noteworthy that the funding for NJ ZIP is derived from the Regional Greenhouse Gas Initiative, which may ensure a level of stability and predictability in the program's continuation. This could imply a sustained opportunity for Envirotech Vehicles if they continue to participate successfully in the program's future phases.
The NJ ZIP program's impact on the local economy and environment is multifold. By incentivizing the purchase of zero-emission vehicles, the program aims to reduce greenhouse gas emissions, particularly in areas with a history of being disproportionately affected by transportation emissions. This initiative not only addresses environmental concerns but also fosters economic opportunities by supporting businesses in their transition to cleaner technologies. The bonuses for small businesses and those owned by minorities, women and veterans, further indicate the program's commitment to inclusive economic growth.
For stakeholders, the long-term benefits of participating in such programs extend beyond immediate financial gains. Companies like Envirotech Vehicles that align with environmental policies may benefit from enhanced brand reputation, customer loyalty and a competitive edge in a market increasingly driven by sustainability.
03/12/2024 - 06:00 AM
OSCEOLA, AR / ACCESSWIRE / March 12, 2024 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a provider of new zero-emission, purpose-built electric vehicles (the "Company"), today announced that the Company currently has 43 vehicles on order from 19 customers with binding purchase orders and with funding approved by New Jersey's Zero Emission Incentive Program ("NJ ZIP") As noted above, these orders represent approximately $4.3 million in revenue, and are anticipated to be delivered in 2024.
Philip Oldridge, Chief Executive Officer of Envirotech Vehicles, commented, "We are pleased to provide this update to our investors and customers to demonstrate that we have been hard at work to attract additional customers through NJ ZIP. Significant interest in green transportation from the business owners in the state of New Jersey in conjunction with the NJ ZIP program continues to be strong, and we look forward to providing customers in New Jersey with our best-in-class vehicles. We are also excited to continue to be participating in the program in its second phase, which began in 2022."
NJ ZIP's second phase is a $19million voucher program that supports businesses and institutions purchasing new, zero-emission vehicles operating in the greater Newark and greater Camden areas by offering up to $175,000 t owards the purchase of medium and heavy duty zero-emission vehicles. The program provides vouchers with base values ranging between $20,000 t o $175,000 for businesses and institutional organizations looking to transition their fleets to zero-emissions. Bonuses are available for small businesses and minority-, women-, and veteran-owned businesses. NJ ZIP is funded by proceeds allocated to the New Jersey Economic Development Authority ("NJEDA") by the Regional Greenhouse Gas Initiative ("RGGI") for the purposes of reducing harmful emissions, especially in communities disproportionately impacted by transportation emissions, and creating economic opportunity within the state.
About Envirotech Vehicles
Envirotech Vehicles, Inc. is a provider of purpose-built zero-emission electric vehicles focused on reducing the total cost of vehicle ownership and helping fleet operators unlock the benefits of green technology. We serve commercial and last-mile fleets, school districts, public and private transportation service companies and colleges and universities to meet the increasing demand for heavy-duty electric vehicles. Our vehicles address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. For more information visit www.evtvusa.com .
Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in reports filed by Envirotech Vehicles, Inc. with the Securities and Exchange Commission, all of which are available online at www.sec.gov . All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech Vehicles undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
Envirotech Vehicles
Franklin Lim, CFOfranklin.l@evtvusa.com
SOURCE: Envirotech Vehicles, Inc
press release on accesswire.com
Envirotech Vehicles, Inc. (EVTV) currently has 43 vehicles on order.
The current orders represent approximately $4.3 million in revenue for Envirotech Vehicles, Inc. (EVTV).
The orders are funded by New Jersey's Zero Emission Incentive Program (NJ ZIP).
NJ ZIP's second phase is a $19 million voucher program supporting businesses and institutions purchasing new, zero-emission vehicles in specific areas.
Philip Oldridge is the Chief Executive Officer of Envirotech Vehicles, Inc. (EVTV).
