Envirotech Vehicles Announces EPA Clean School Bus Grant Program Award of $8.57 Million for 25 of its Fully Electric School Buses
Envirotech Vehicles, Inc. (NASDAQ:EVTV) announced that the United States Environmental Protection Agency (EPA) has awarded EVTV $8.57 million for the provision of 25 fully electric school buses. The awards are on behalf of eight school districts across Arkansas and Texas. EVTV also announced the launch of its innovative Bumble Bee fully electric school bus for pre-order, with deliveries on track to begin in the third quarter of 2024. The EPA has selected 67 applicants to receive nearly $1 billion through its first Clean School Bus (CSB) Grants Competition, totaling nearly $2 billion awarded to fund the deployment of 5,000 electric and low-emission school buses across the United States. The EPA also opened up the application process for the 2023 CSB Rebate program, expected to award at least $500 million in funding under the 2023 rebate program.
The grant awarded to Envirotech Vehicles by the EPA is a significant endorsement of the company's electric school bus, the Bumble Bee. This development is poised to enhance the company's financial stability and market position, as securing such a substantial grant can lead to increased investor confidence. Moreover, it may trigger a domino effect , potentially leading to more contracts from other districts and states, given the current push for sustainable transportation solutions in the U.S.
From a market perspective, the shift towards electric vehicles (EVs) has been gaining momentum and this award aligns with the broader trend of electrification of transportation . Investors should note the potential for long-term growth in the EV sector, particularly in niche markets such as electric school buses, where there are government incentives to accelerate adoption. However, it is crucial to monitor the company's ability to scale production and maintain quality and safety standards to meet the increased demand.
The $8.57 million grant represents a direct infusion of capital into Envirotech Vehicles, which is likely to positively impact the company's short-term financials. It is essential to assess how this capital will be utilized, whether for production scaling, R&D, or operational expansion . The grant may also improve the company’s balance sheet, potentially reducing the need for future capital raises that might dilute existing shareholders' equity.
Investors should consider the earnings potential of the Bumble Bee bus and the company's current valuation in light of this news. While the grant itself is a one-time event, the ability to leverage it for future sales and partnerships could be indicative of the company's long-term revenue trajectory. Careful analysis of the company's profit margins on these buses and the overall impact on earnings per share (EPS) will be important for evaluating the company's financial health.
The EPA's Clean School Bus (CSB) Grant Program is a critical component of the U.S. government's strategy to reduce greenhouse gas emissions from the transportation sector. Envirotech Vehicles' success in securing the grant not only validates its product but also reflects the company's alignment with federal environmental goals . The transition to electric school buses is expected to have a positive environmental impact by lowering carbon emissions and reducing pollutants that affect air quality and public health.
For stakeholders, the long-term implications include potential regulatory tailwinds as the government continues to incentivize clean energy solutions. Companies that are early movers in this space may benefit from first-mover advantages , such as establishing strong brand recognition and securing customer loyalty. However, it is essential to consider the broader competitive landscape and the possibility of increased regulation affecting market dynamics.
01/25/2024 - 04:15 PM
OSCEOLA, AR / ACCESSWIRE / January 25, 2024 / Envirotech Vehicles, Inc. (NASDAQ:EVTV) , ("EVTV" or "the Company"), announced today that the United States Environmental Protection Agency (EPA) has awarded EVTV $8.57 million for the provision of 25 of its Bumble Bee fully electric school buses. The awards are on behalf of eight school districts across Arkansas and Texas for which the Company acted as grant-writer during the competitive 2023 Clean School Bus (CSB) Grant Program application process.
Phillip Oldridge, Chief Executive Officer of Envirotech Vehicles, commented, "We are proud to have secured these awards for our Bumble Bee fully electric school bus on behalf of our eight school district partners. The EPA Clean School Bus Program is a distinguished and historic program that is serving to kickstart the much needed electrification of the school bus fleet in the United States. We look forward to playing a role in this by supporting our new partners in their endeavor to bring a cleaner, healthier form of transportation for the youth in their communities."
EVTV announced in November 2023 that it had launched its innovative Bumble Bee fully electric school bus for pre-order, with deliveries on track to begin in the third quarter of 2024. The vehicle features seating for up to 85 passengers including the driver and a full pass-through storage compartment, and will come in two variants, including a long range model.
On January 8, 2024, the EPA announced the selection of 67 applicants to receive nearly $1 billion through its first CSB Grants Competition. The awards will help recipients purchase more than 2,700 clean school buses, spanning across 280 school districts and 37 states. When combined with the inaugural installment in 2022 of the five-year EPA CSB Program, a total of nearly $2 billion has been awarded to fund the deployment of 5,000 electric and low-emission school buses across the United States. In addition to the CSB Grant program, the EPA opened up the application process for the 2023 CSB Rebate program in the fall of 2023. This program is expected to award at least $500 million in funding under the 2023 rebate program, with recipients expected to be notified in April 2024.
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. EVTV serves commercial and last-mile fleets, school districts, public and private transportation service companies, and academic institutions to meet the increasing demand for heavy-duty electric vehicles. EVTV's 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.
Contact Information
Investor Relations envirotech@icrinc.com
Douglas M. Campolidouglas.c@evtvusa.com
SOURCE: Envirotech Vehicles, Inc.
press release on accesswire.com
The EPA awarded EVTV $8.57 million for the provision of 25 fully electric school buses on behalf of eight school districts across Arkansas and Texas.
Deliveries of the Bumble Bee fully electric school buses are on track to begin in the third quarter of 2024.
The EPA selected 67 applicants to receive nearly $1 billion through its first Clean School Bus Grants Competition.
The 2023 CSB Rebate program is expected to award at least $500 million in funding.
