Electric school bus manufacturer GreenPower Motor Company signed a multimillion-dollar contract with New Mexico for a pilot program at the same time it is facing obstacles with a similar West Virginia project and perilous corporate finances.
The company announced Aug. 4 that the $5 million-plus New Mexico contract resulted from an award made by the state under a request for proposals published in May for participation in a two-year, all-electric school bus pilot project. GreenPower stated the project would deploy three Type A Nano BEAST school buses during the 2025-2026 school year, and three Type D BEAST and Mega BEAST school buses in the coming months.
Those vehicles, the first three scheduled for deployment the week of Sept. 15, are expected to “rotate around the state in five pilot rounds each school year with each round lasting six weeks.” The company, which is partnering with Highland Electric Fleets to install and implement the necessary charging infrastructure, will also provide training for the school bus drivers, mechanics and the community’s first responders to “help ensure a seamless testing period.”
GreenPower President Brendan Riley said via a press release that the New Mexico project is “leveraging the successful pilot that GreenPower conducted in West Virginia but also has a concentration on evaluating charging options and infrastructure.”
At the same time, GreenPower has faced several headwinds this year in West Virginia with a similar contract that also began with a pilot. The electric school bus manufacturer took ownership of its South Charleston plant in August 2022 and eight months later entered into an agreement with the state to sell $15 million worth of BEAST and Nano BEAST models. The state also agreed to pay GreenPower a $3 million deposit.
Separately, GreenPower and the state signed an agreement for an additional $18.6 million in ESBs awarded by the EPA Clean School Bus Program in 2024 to seven county school districts.
But West Virginia Metro News reported last month GreenPower had only delivered about a dozen of the promised 41 ESBs as of this past spring.
The state claims breach of contract. GreenPower CEO Fraser Atkinson said the reality is far more nuanced. During a phone call Thursday, Atkinson told School Transportation News several factors have hindered the company’s ability to deliver the ESBs.
“We have either delivered or we had vehicles ready to go, to be delivered to every single one of those counties,” he said.
Among the issues, Atkinson added, some school districts have not signed required documents with the EPA and GreenPower’s West Virginia dealer, Matheny, to accept the ESBs. In at least one other case, Atkinson said a county did not have available the older diesel school bus EPA required to be scrapped, so the new ESB couldn’t be delivered.
“Even if the dealer came forward and said, well, don’t worry about this other part, let’s just deliver the vehicle, you still have to worry about it,” he added. “We [would not be] compliant with the program.”
He also noted some counties still don’t have electric infrastructure installed. While GreenPower could still deliver those school buses, Atkinson noted that ESBs can’t sit in a parking lot for months on end without being operated like internal combustion vehicles can.
“There’s a much higher level of ongoing maintenance that you need to have on these vehicles if you’re not using them almost every day,” he added.
A West Virginia official contacted by STN declined comment because the issue is ongoing, and a request for comment from Gov. Patrick Morrisey’s office had not been answered at this report.
Hiccoughs With State Inspections and Maintenance
Meanwhile, Atkinson said some counties are having success with GreenPower. But not all say they are. Tony Harris, transportation director for the Monongalia County Schools serving the Morgantown and surrounding area, said the state’s second-largest district received a GreenPower Beast and a Nano Beast, which met his expectations at first.
However, he added, “We have been working with the West Virginia Department of Education, Department of Transportation and GreenPower in regard to a few issues where the buses do not meet the state specifications for a school bus.”
Harris clarified that the unmet state specifications center on failed state inspections for items such as the parking brake release, the color of loading light switches, non-working window defroster fans, and controls for exterior mirrors not working.
Atkinson said GreenPower has worked closely with the state on specifications but commented that not all state inspectors may have the same perspective on what constitutes an out-of-service item, especially as this could be their first experience with an electric school bus.
Still, he noted that any issues keeping school buses sidelined are “a concern.”
“Is there an educational process? I think you’re absolutely right. In hindsight, if all the parties had been in the same room 2 1/2 three years ago and worked through [the issues] …,” he said. “But the flip side is, until you’re actually in the field looking at these things in real time, you probably couldn’t have guessed what all the different issues or potential considerations that needed to be discussed are at the outset. It is a bit of trial and error.”
Harris also expressed disappointment about school bus-related services, which is “an area that has not come close to meeting expectations set for all vendors.”
“We have not been able to obtain stock inventory to have on-hand when something breaks on one of the buses,” he continued. “We have requested training several times for our mechanics on how to service the buses for our preventative maintenance schedules. The mechanics have received some training when representatives have been onsite to address issues when they have been onsite, but no formal training has been provided.”
He said training has so far consisted of what to do in the case of a battery issue or fire.
“A lot of the preventive maintenance items are typical in all school buses, but there are some unique things when it comes to EV school buses,” he said. “Also, we have no access to software or manuals to diagnose problems when they arise. We have requested these products at different times. We have these products for other bus types.”
Atkinson commented that GreenPower is very concerned about any high-voltage work necessary on its school buses.
“Our approach is, until they’re up to speed with the basics, we like to or prefer to take responsibility for anything that could be related to the high-voltage battery system,” adding dealer Matheny has limited experience working with GreenPower’s technology.
Harris said that the district has had to adjust its operations “considerably” after the delivery of the buses.
“We have two of the Nano BEAST buses in our fleet that have run no more than a month on routes since we took delivery of them. These buses have less than 3,000 miles on each of them,” he said, adding the school buses serve special needs and McKinney-Vento student populations. “We have four of the BEAST buses in our fleet, and one has been off the road since June due to defects found during an annual state inspection of the bus. The other three BEAST buses have been taken off the road [last] week due to issues that do not allow us to continue to use them at this time. By taking these buses off the road, it has impacted our bus routes due to the capacity of the buses and not having the same size buses in our spare bus fleet. The one BEAST bus has just over 4,000 miles on it, and this is because it was part of the state pilot program. The other three have less than 3,000 miles on them.”
Meanwhile, John Droppelman, director of support services with the Mineral County Schools, said in an email, “We have not received our two GreenPower buses. We have not received any information from GreenPower in quite some time. I do not expect to ever receive the promised buses. Information about the production and distribution of the GreenPower buses is scarce.”
Atkinson commented, “It’s the early days and there are things that have to get sorted out.” But he continued that, across the electric school bus market, he sees some school districts that have yet to buy-in to electrification, which complicates matters.
“If you have a good partner, they’ll work with you, and they’ll get the vehicles to a place where they’re just not encountering many issues or problems,” he said.
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At the same time, GreenPower has been unable to fully staff its South Charleston manufacturing facility. The agreement with West Virginia listed the goal of 900 jobs filled by the end of last year.
“We don’t get paid a cent until a bus is delivered,” Atkinson told STN.
In turn, he added, the company cannot promise its plant workers the necessary weekly hours.
The West Virginia MetroNews Network reported May 26 that confirmed more than a dozen employees had been notified by email three days earlier that they had been laid off. The company did not confirm the exact number of employees who had been laid off, but the network quoted GreenPower’s Riley saying, “The imposition of new tariffs has significantly increased our operational costs and disrupted our ability to build and deliver buses in a timely manner.”
He added that restructuring and other cost-cutting measures were not sufficient to prevent the layoffs.
MetroNews reported last month that GreenPower indicated it employed fewer than 100 workers even before the spring layoffs.
Resulting Financial Uncertainty
Amid all of this, BDO Canada LLP released its independent audit of GreenPower as of March 31, which stated that “the company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern.”
A statement by GreenPower issued in July of its financial status at the time noted that revenues for the fiscal year that ended March 31 fell 49.5 percent from the previous year — down from $39,271,839 to $19,847,279 — and experienced a total comprehensive loss of $18,511,895.
GreenPower contends that tariffs are “causing much harm to the entire school bus manufacturing sector. This business instability and the significantly increased costs impacts all school bus manufacturers whether they are producing electric, diesel, propane, or gas school buses. The implications are staggering. If a school bus manufacturer were able to pass these costs on to a school district, it would amount to a tax on the government as the cost would be paid by either local, state or federal government funding.
“But a school bus original equipment manufacturer (OEM) cannot pass on the increased cost since there are state contracts in place for the purchase of school buses,” the company continued. “The new tariffs leave no pathway for a school bus OEM to build vehicles in the U.S., and it completely halts GreenPower’s efforts to on-shore and friend-shore the supply chain, especially non-Chinese battery cells and components.”
An interim Q1 2026 earnings statement released Aug. 15 for the period ending June 30 showed gross revenue fell by 48 percent from the same period last year to $1.549 million, with gross profit at $361,682 after deducting the cost of sales, which actually represents a 63 percent increase from June 2025.
But the statement notes Greenpower anticipates it will not be in compliance with the minimum debt service coverage ratio at the end of the current fiscal year because it has not generated positive EBITDA in the previous four quarters. The outstanding balance on the term loan facility was $3.59 million as of June 30.
The interim statement echoed the warning of the auditor this spring.
“The company’s ability to achieve its business objectives is subject to material uncertainty, which casts substantial doubt upon the company’s ability to continue as a going concern,” it says.
Ryan Gray contributed to this report.
