On the way to finalizing the merger with the Special Purpose Acquisition Company (SPAC) GigCapital3 (NYSE: GIK), Lightning eMotors continues to generate new client orders and partnerships. Earlier this month, Lightning eMotors signed a contract with Proterra that will merge with ArcLight Clean Transition (NASDAQ: ACTC) to provide battery technology for its commercial electric vehicles.
Lightning eMotors has just signed a new contract with the international delivery giant DHL, a subsidiary of Germany German postal service (OTC: DPSGY).
Why DHL’s deal with Lightning eMotors matters
As part of DHL’s broader efforts to reduce CO2 emissions and combat climate change, the company has sought to electrify its fleet of commercial vehicles. In 2017, DHL set itself an ambitious goal of reducing logistics-related emissions to zero by 2050. However, the company recently accelerated its decarbonization roadmap and now hopes to electrify 60% of its fleet by 2030.
DHL has been testing 9 Lightning electric vans as part of a pilot program in the USA since the end of 2020. After the pilot program was deemed successful, DHL is now planning to deploy an additional 89 electric vehicles in New York and New York California later this year. Tim Reeser, CEO of Lightning eMotors, said the company’s flexible and modular design enabled him to customize the electric vehicles to meet DHL’s specific operational needs.
The vehicles – based on fordThe Transit 350HD chassis (NYSE: F) offers up to 61 MPGe (miles per gallon equivalent), making it far more efficient than the 13 MPG that comparable gas-powered vans can achieve. The deal is a huge win for Lightning eMotors, which is also working to build relationships with other well-known companies, including Amazon.com (NASDAQ: AMZN).
Is GIK a Buy? Analysis of the strong pipeline of Lightning e-motors
DHL was one of several important fleet trials that Lightning eMotors carried out with customers over the past year. Typically, a larger commercial fleet operator will deploy a small number of vehicles. Once these pilots can demonstrate the operational benefits of electrification, e.g. B. lower operating costs, the customer ideally buys more electric vehicles.
Major customers such as DHL and Amazon had already ordered 1,500 vehicles at the end of September. Amazon has already used Lightning’s electric vans in San Diego for Prime deliveries. If the e-commerce juggernaut follows in DHL’s footsteps, Amazon may decide to buy more electric vehicles from Lightning as part of its own sustainability initiatives.
Existing orders are already sufficient for Lightning eMotors to meet its sales forecast of $ 63 million in 2021, provided those orders can be executed and executed. Long-term, Lightning hopes to grow sales to nearly $ 1.2 billion by 2024, which is an extremely ambitious goal in just a few years.
The company’s merger with GigCapital3 is expected to complete in the second quarter. From this point on, the ticker symbol changes to “ZEV”. Until then, investors can effectively own the company by purchasing GigCapital3 (Nasdaq: GIK).
The transaction values Lightning eMotors as a pro forma equity value of $ 823 million.
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