Lion Electric reported weak Q2 earnings today, with revenue nearly halved year over year to $30.0 million (all figures US) and a net loss of $19.3 million compared to a year-ago net loss of $11.8 million.

Lion delivered 101 vehicles in the quarter, 98 fewer than Q2 2023, which it blamed on “the impact of timing of EPA rounds and the continued delays and challenges associated with the granting of subsidies related to the ZETF program.”

Deliveries were also impacted by the company’s integration of its Lion MD batteries and ramp-up of its Lion5 and LionD platforms. Its gross profit of $400,000 in Q2 2023 compares to a gross loss of $15.2 million in the second quarter of this year.

The earnings report was accompanied by news of further restructuring which includes slashing its workforce by 30% (about 300 employees) in the U.S. and Canada, across all areas of the business.

Lion also plans to trim its truck manufacturing output due to lower market demand than initially expected for all-electric trucks. It plans to sell its battery packs to third parties and will sub-lease part of its Joliet, Ill., plant and other facilities. The company is also examining ways to reduce costs including third-party logistics and consultants.

Lion reported it now has more than 2,100 vehicles on the road with more than 46 million kilometers traveled. It has 190 trucks and 1,804 buses on its order books with a combined value of about $475 million.

“Despite the important challenges the electric vehicle market is currently facing, Lion has been able to realize major headway in the recent rounds of the EPA program, which should bring significant positive momentum to our company, and also made important progress in the last quarter, such as the commercial launch of our Lion8 tractor and the certification of our LionBattery HD pack,” CEO and founder Marc Bedard said in a release.

“Transition to electric is taking longer than initially expected, but transportation electrification is here to stay. It is with that mindset that we have put together an action plan to adjust our cost structure to enable us to continue to support the increasing electric school bus demand and maintain our leadership position, while allowing us to keep supporting the truck operators in their electric transition and focus on our profitability objectives,” he added.

Shares fell as much as 20% this morning on the news.