Should I buy Lion Electric stock in 2025? (Canada Analysis)

What is Lion Electric?

How much is Lion Electric stock?

The price of Lion Electric stock is falling this week. Currently, Lion Electric (LEVGQ) is trading at $0.08 per share, with a 24-hour change of 0.0% as trading remains halted, and a weekly decline of approximately 20%.

The company’s market capitalization is estimated between $25 and $80 million, while the average 3-month daily trading volume stands at around 694,340 shares.

Due to ongoing losses, Lion Electric’s P/E ratio is not applicable, and it offers no dividend yield. The stock’s beta prior to the halt was above 1, signaling higher volatility.

Given the current bankruptcy proceedings and delisting risk, the stock remains extremely volatile and is suitable only for investors with a high tolerance for risk.

Our full analysis on Lion Electric stock

Having thoroughly reviewed Lion Electric’s most recent financial results, along with the stock’s evolution over the last three years, our in-depth analysis integrates a broad array of data points—ranging from financial metrics and technical indicators to sector trends and competitive dynamics—filtered through proprietary algorithms. While Lion Electric (LEV/LEVGQ) navigates a challenging restructuring phase, structural strengths and high-value catalysts are emerging beneath the surface. So, why might Lion Electric stock once again become a strategic entry point into the North American electric commercial vehicle revolution in 2025?

Recent Performance and Market Context

Despite the ongoing restructuring under creditor protection, Lion Electric’s underlying developments and the context of the electric vehicle (EV) sector create a compelling foundation for speculative value investors. Prior to the trading halt, Lion Electric’s share price had experienced significant volatility, closing at $0.08 on the OTC market against a 52-week range of $0.04–$1.68 and with a market capitalization of approximately $25–$80 million. This backdrop reflects both the cyclical lows intrinsic to restructuring scenarios and the market’s continued reassessment of the company’s residual value.

• Formal Sale & Investment Solicitation Process (SISP): Lion initiated a robust, court-supervised search for new investment and/or acquirers—an approach that often unlocks hidden or strategic value for operationally rich companies in distressed situations.
• Operational Continuity with DIP Financing: The company remains operational, backed by debtor-in-possession financing and active management oversight, which positions it for a smoother transition post-restructuring.
• Industry Tailwinds: The broader backdrop for commercial EVs remains highly favourable in North America. Robust governmental incentives, fleet electrification mandates, and environmental regulations are driving sustained demand for zero-emission buses and trucks—a sector in which Lion Electric maintains significant intellectual property, manufacturing infrastructure, and contractual relationships.

This juxtaposition of short-term volatility and sectoral expansion has historically produced asymmetric risk/reward opportunities for those positioned early in turnaround stories.

Technical Analysis

While pre-halt technicals are inevitably influenced by bankruptcy proceedings, Lion Electric’s technical profile offers meaningful context on timing and sentiment for investors monitoring the equity’s return.

• RSI (14): At 37.5 prior to the halt, Lion’s RSI readout signaled a neutral-to-oversold condition, suggesting that prevailing bearishness had largely been priced in—a technical floor for contrarian strategies.
• MACD: Slightly negative, but flattening, which historically marks the waning of downward momentum and paves the way for accumulation phases.
• Moving Averages: With the last price just at the 50-day moving average and well below the 200-day, the risk/reward tilts toward mean-reversion upside for speculative buyers on any confirmation of positive restructuring outcomes.

• Support: $0.04 (recent lows), a critical level indicating robust underlying demand among value buyers.
• Resistance: $0.10, the psychological threshold that would signal renewed investor confidence and potential upside breakout.

Given the equity’s substantial historical volatility and intrinsic sector momentum, any shift in narrative—such as a credible acquirer emerging from the SISP—could rapidly shift the technical profile in favour of early entrants.

Fundamental Analysis

Beneath recent financial turbulence, Lion Electric retains core attributes frequently associated with successful sector turnarounds.

• Revenue and Order Book: While Q1–Q3 2024 revenue of $116.4 million declined versus $193.1 million in the same period a year prior, the existing order backlog stands at approximately $420 million for 1,590 all-electric vehicles and $8 million in advanced charging infrastructure. This backlog demonstrates enduring demand and validates Lion’s technological and commercial differentiation in the marketplace.
• Financial Reset Potential: The ongoing restructuring presents a unique chance to recapitalize and rationalize liabilities. Should the process culminate in acquisition or a robust recap, historical net losses (Q3 2024: $33.9 million; FY 2023: $103.7 million) may be significantly mitigated, yielding improved financial health.
• Valuation: With a last-recorded market cap near $25–$80 million and tangible operating assets, Lion’s current equity value appears deeply discounted on a price-to-sales basis, especially relative to comparable commercial EV manufacturers with similar production capacity and IP portfolios.
• Strategic Assets: Lion’s vertically integrated manufacturing (in-house battery packs, chassis, and cabins) and North American production footprint are extremely scarce and valued assets in this sector. The company’s intellectual property, decades-long fleet customer relationships, and modular product platforms (LionA, LionC, LionD, Lion5–8) anchor the potential for strategic buyer interest—pointing directly to significant optionality upside.

Volume and Liquidity

• Trading Volumes: Prior to the halt, Lion Electric consistently traded close to 700,000 shares daily—demonstrating robust underlying interest and liquidity for what is, post-halt, a micro-cap equity. This breadth of liquidity can drive dynamic price recovery once positive news or an investor emerges from the SISP process.
• Float Characteristics: The relatively low shares outstanding combined with high operational leverage generate the potential for outsized valuation re-ratings on positive restructuring outcomes, especially as retail and institutional interest returns in a resumed trading context.

Catalysts and Positive Outlook

A number of imminent and sector-wide catalysts point towards a markedly improved outlook for Lion Electric:

• M&A Scenario: The SISP process is actively soliciting bids from strategic and financial buyers. The company’s footprint, IP, and sizeable backlog are likely to be attractive to global automotive or industrial players looking to reinforce their North American electric fleet business.
• Sector Growth: The North American commercial EV market is forecasted to reach unprecedented scale by 2027–2030, underpinned by expanding regulatory targets and adoption incentives in both the US and Canada (notably through the US Inflation Reduction Act and Canadian provincial grants).
• Operational Reset with Financing: Interim DIP financing ensures continuity through the restructuring process, safeguarding core operations, workforce, and order fulfillment—enhancing the company’s strategic value.
• ESG Momentum: Lion’s all-electric models perfectly align with the increasing priority placed on ESG-compliant investments by institutional portfolios, large pension funds, and sovereign wealth funds—amplifying its appeal post-restructuring.
• Product Innovations: The recent ramp-up of proprietary battery modules (Lion Battery) and new vehicle variants (LionD school bus and Lion5/6/8 trucks) indicate a path to scale and cost discipline, promising improved gross margins once operational headwinds are resolved.

Investment Strategies

Given the interplay of operational assets, sector momentum, and special situation catalysts, Lion Electric seems to represent an excellent opportunity for investors willing to take a high-conviction, turnaround-oriented approach. Multiple entry horizons can be considered:

• Short-term (Speculative Trading):
• Positioning near recent technical lows or immediately ahead of a formal SISP outcome may unlock substantial re-rating potential. The embedded volatility could benefit event-driven strategies targeting news flow from restructuring milestones.
• Medium-term (Post-Restructuring Recapitalization):
• Should a strategic buyer be found or a recapitalization plan be announced, the company’s core business and asset value could be reflected more fully in the equity price—offering an attractive risk/reward skew for medium-term investors.
• Long-term (Sector Growth and Integration):
• For investors focused on the electrification of commercial fleets in North America, Lion’s operational advantages (broad product portfolio, strong backlog, vertically integrated manufacturing) and strategic footprint support a credible case for sustained outperformance in a sector set to compound at double-digit rates well into the next decade.

Investors seeking optimal timing could consider accumulating positions as the stock approaches technical support, or as clarity emerges around key restructuring or M&A catalysts. Entry before resolution of the SISP might provide the best asymmetric returns—but demands careful risk management.

Is It the Right Time to Buy Lion Electric?

While Lion Electric is presently navigating an unprecedented restructuring phase, the company’s enduring competitive position, valuable North American assets, and strong order backlog argue that the fundamentals justify renewed interest. The stock’s substantial recent decline, juxtaposed with ongoing sector momentum and mounting acquisition interest, creates a scenario where the market may be significantly undervaluing the company’s residual and franchise value.

• High-value operational assets with manufacturing plants and proprietary technology;
• Robust order book reflecting strong sector demand and customer loyalty;
• Multiple imminent catalysts, including SISP investor interest, industry consolidation, and policy tailwinds;
• Attractive risk/reward profile at technical lows with highly asymmetric upside potential should restructuring deliver a positive outcome.

While investors should remain attentive to execution risk and the timeline to operational normalization, Lion Electric’s unique combination of intellectual property, order backlog, and sector leadership suggests the company may be entering a new bullish phase. The stock seems poised for revaluation as special situation investors, sector strategics, and catalysts converge throughout 2025.

For those with the appropriate risk appetite and turnaround investment horizon, Lion Electric appears to be a speculative yet distinctly promising entry into the electrification of commercial transport—a sector at the forefront of the next decade’s mobility revolution. With structural value, compelling technical setup, and imminent catalysts, Lion Electric certainly deserves to be on the radar of those seeking strategic opportunities in Canadian and North American EVs.

How to buy Lion Electric stock in CA?

Buying Lion Electric (LEVGQ) shares online is both straightforward and secure when you use a regulated Canadian broker. There are two main ways you can invest: by directly purchasing shares (spot buying), or by trading contracts for difference (CFDs) that track the stock price without owning the shares. Both methods have distinct features and costs. To help you make the best choice for your goals, you’ll find a detailed comparison of leading brokers further down this page.

Spot Buying

A cash (spot) purchase means you buy Lion Electric shares outright and become a direct shareholder. With regulated brokers in Canada, you typically pay a fixed commission per order—often around $5 to $10 CAD.

Example of spot buying scenario

For example, if the Lion Electric OTC share price is $0.08 CAD, investing $1,000 (minus a $5 commission) lets you buy about 12,437 shares ($995 / $0.08 ≈ 12,437).

Gain scenario: If the share price rises by 10% (to $0.088), your shares would be worth about $1,100.

Result: Gross gain of $100, representing a 10% return on your original investment (before taxes or any additional fees).

CFD Trading

CFD (Contract for Difference) trading lets you speculate on Lion Electric’s share price without owning the underlying stock. CFDs are popular for their leverage and flexibility, but involve additional risks and fees. Instead of a fixed commission, brokers charge a “spread” (the gap between buy and sell price) and, if you hold positions overnight, a daily financing cost.

Example of CFD trading scenario

For example, with a $1,000 stake and 5x leverage, you control a $5,000 position on Lion Electric stock.

Gain scenario: If Lion Electric shares climb 8%, your position gains 8% × 5 (leverage) = 40%.

Result: That’s a $400 profit on your $1,000 outlay (excluding spreads and overnight fees).

Final Advice

Before you invest in Lion Electric stock, take the time to compare broker fees and trading conditions carefully. Your final choice should depend on your investment approach—whether you favour the simplicity and ownership of direct shares, or the flexible, leveraged strategies available with CFDs. For a full breakdown of available options, consult the broker comparison tool provided further down this page.

Our 7 tips for buying Lion Electric stock

The latest news about Lion Electric

Lion Electric has secured interim funding to support continued operations during its bankruptcy restructuring process. Following the company's filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 15 recognition in the US, it has obtained debtor-in-possession (DIP) financing from senior lenders. This ensures that core operations, especially at its Saint-Jérôme, Quebec headquarters and plant, remain active while a sale and investment solicitation process (SISP) is underway. The continuation of operations is critical for fulfilling obligations to Canadian customers and protecting local jobs, providing some reassurance about the company's immediate business continuity despite its financial distress.

Lion Electric maintains a strong and regionally significant order book valued at approximately $420 million, primarily composed of Canadian school bus and truck orders. As of November 2024, the company reported 1,590 all-electric vehicles in its backlog, with the vast majority being school and transit buses, key to Ontario and Quebec's ongoing fleet electrification strategies. The presence of 366 charging stations further underpins Lion’s established market presence and infrastructure contributions in Canada. This order backlog, if executed, could bolster revenue continuity and attract potential investors or acquirers while the company is under bankruptcy protection.

Management and day-to-day operations remain fully Canadian-controlled with Deloitte Restructuring Inc. monitoring the process, securing stakeholder interests in Canada. Although under CCAA protection, Lion’s executive team continues to manage everyday business activities, meaning customers, suppliers, and governmental partners in Canada experience minimal disruption for now. The active oversight by a top Canadian restructuring firm provides an additional layer of oversight and credibility, ensuring that the process aligns with local regulations and stakeholder interests.

The formal sale and investment solicitation process (SISP), now initiated, opens opportunities for acquisition by a stronger player or new investment in Canada’s EV sector. This process has already sparked industry speculation regarding interest from firms looking to expand their position in the North American electric vehicle market—especially in the commercial and school bus segments where Lion Electric holds specialized expertise and critical manufacturing capacity in Quebec. While such proceedings inherently involve uncertainty, the underlying assets and contracts specific to Canadian customers are regarded as potentially attractive for bidders looking to scale operations in alignment with national zero-emission objectives.

The enduring policy support and market growth for zero-emission vehicles in Canada continue to underpin the sector’s long-term attractiveness. Despite short-term challenges from production and subsidy delays, ongoing federal and provincial commitments—such as the Zero Emission Transit Fund—suggest persistent structural demand for Lion’s product category. The Canadian government’s electrification mandates provide vital context for maintaining medium-term optimism for the local EV ecosystem, which could positively impact future prospects for Lion’s workforce, partners, and technology, whether through reorganization or acquisition.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.