Shares of Lightning eMotors Inc. ZEV, +51.01% soared 46.3% to pace all premarket gainers Tuesday, after the commercial electric vehicles company announced a a partnership agreement valued at up to $850 million with Berkshire Hathaway Inc.’s BRK.A, -0.03% BRK.B, -0.11% Forest River Inc. for the deployment of 7,500 zero-emission shuttle buses. Under terms of the agreement, Lightning eMotors will provide fully electric powertrains, charging products and services for Forest River over the next four and a half years. The powertrains will be made at Lightning eMotors’ Colorado facility and shipped to Forest River’s factory in Indiana for final assembly of Class 4 and Class 5 electric passenger buses. “This has the potential to be the largest contract ever in the electric shuttle bus market, and we believe it will be the catalyst for other large commercial vehicle OEMs and fleets to accelerate their adoption of commercial electric vehicles,” said Lightning eMotors Chief Executive Tim Reeser. Analyst Michael Ward at Benchmark reiterated his buy rating and $17 stock price target on Lightning eMotors, saying the deal doubles the size of the company’s current backlog. The stock has tumbled 18.0% over the past three months through Monday, while shares of EV market leader Tesla Inc. TSLA, -0.67% has rallied 13.5% and the S&P 500 SPX, +0.06% has tacked on 5.8%.
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