Quebec's renewal of its subsidy program for electric school buses—with increased support from $175,000 to $240,000 per bus—has been a key condition for a revised investor offer to acquire Lion Electric. The move is part of a broader provincial initiative to electrify 65% of the school bus fleet by 2030, bolstering sustainable transportation and indirectly supporting the company's market prospects.

Lion Electric faces likely liquidation following Quebec's refusal to invest more public funds, triggering mass layoffs and raising allegations of misleading investors regarding the company’s financial health. Shareholders have filed a class-action lawsuit claiming that executives misrepresented the firm's condition, while nearly all employees were laid off, leaving only a skeleton workforce.

Quebec opposition parties, citing a Radio-Canada investigation, have called for a legislative committee probe into allegations that Lion Electric misled investors by using unrealistic forecasts and fabricating orders, despite receiving $177 million in public funds. The probe comes amid claims that the company enriched its executives at the expense of small investors.

Quebec Liberal opposition demands a parliamentary commission to question Lion Electric's founder Marc Bedard over alleged mismanagement of $177 million in government investments, citing false orders, unrealistic forecasts, and failure to disclose major issues that misled small investors.

Quebec opposition parties have demanded an investigation into Lion Electric following concerns over its struggling operations. The call, reported on January 16, 2025, raises questions about the company's transparency and business practices amid its operational difficulties, potentially affecting its ethical standards.

On June 28, 2024, nearly 300 workers at Lion Electric successfully unionized in Montreal, overcoming strong anti-union tactics from the employer. The move comes after a three-year campaign and is seen as a significant win for labor rights and worker empowerment.

On April 18, 2024, Lion Electric announced the layoff of approximately 120 employees, primarily in overhead and product development roles, as part of cost-cutting measures aimed at generating roughly $40 million in annual savings. The decision was attributed to market pressures and delays associated with Canada's Zero-Emission Transit Fund.

Approximately 140 workers at the Joliet, IL location of Lion Electric announced their intention to unionize with the International Association of Machinists and Aerospace Workers (IAMAW) to address chronic workplace issues including low pay, unsafe working conditions, job insecurity, and favoritism.