ElectraMeccanica Vehicles Corp. Ltd. (NASDAQ: SOLO), based in Vancouver, British Columbia, is a designer and manufacturer of electric vehicles (EVs). Intermeccanica, a subsidiary of ElectraMeccanica, has successfully built high-end specialty cars for over 60 years. ElectraMeccanica’s flagship offering is the Solo, a single-seat electric vehicle. This vehicle is positioned to revolutionize commuting, delivery and shared mobility. The Solo provides a driving experience that is unique, trendy, fun, affordable and environmentally friendly.
The company’s initial product line targets urban residents seeking to commute in an efficient, cost-effective manner. The company has built 64 prototype vehicles in-house as of July 9, 2020, and approximately 54 pre-production vehicles with manufacturing partner Zongshen Industrial Group Co. Ltd.
To support short-term production, the company entered into a manufacturing agreement with Zongshen, a large-scale scientific and technical enterprise which designs, develops, manufactures and sells a diverse range of motorcycles and motorcycle engines in China.
The company believes that its plans to mass-produce EVs over the short-term, combined with a 61-year history of automotive design, manufacture and delivery to customers, significantly differentiate ElectraMeccanica from other EV companies.
The company has two other EV candidates in the early design development stage –the Super Solo, a sports car model of the Solo, and the Tofino, an all-electric, elegant high-performance two-seater roadster.
The company expects the Solo to list at the manufacturer suggested retail price of $18,500. The Solo will be powered by a high-performance electric rear drive motor, enabling it to achieve:
- a top speed of 80 mph and an attainable cruise speed of 68 mph resulting from its lightweight aerospace composite chassis;
- acceleration from 0 to 60 in approximately 10 seconds; and
- a range of up to 100 miles generated from a lithium ion battery system that requires just four hours of charging time.
Interest and investment in clean technology have been trending upward for several years as the world becomes increasingly aware of the damaging effects that pollution and greenhouse gas emissions have on the environment. EVs are a growing segment of this clean technology movement. According to Allied Market Research, the global electric vehicle market is expanding rapidly and is expected to reach $802.81 billion by 2027. This would indicate a CAGR of 22.6 percent, compared to the market value reported in 2019 of $162.34 billion (http://nnw.fm/FarYx).
The EV market is evolving, and companies within it must be able to adapt without jeopardizing the timing, quality or quantity of their products. With respect to the Solo, ElectraMeccanica faces strong competition from established automobile manufacturers, including manufacturers of EVs such as the Tesla Model 3, the Chevrolet Bolt and the Nissan Leaf.
The company acknowledges that most of its current and potential competitors have significantly greater financial, technical, manufacturing and marketing resources. Virtually all competitors have more extensive customer bases and industry relationships, as well as longer operating histories and greater name recognition.
Despite such intense competition and although the company expects competition to intensify in the future in light of increased demand for alternative fuel vehicles, continuing globalization and consolidation in the worldwide automotive industry, ElectraMeccanica believes it has the ability to successfully compete in the sector.
The company’s extensive managerial and automotive experience, production capability and unique product offerings will enable it to successfully operate in the EV market in a way that many of its competitors cannot. In particular, those competitive advantages include:
- Extensive development capabilities: The company’s 2017 acquisition of Intermeccanica provides access to 61 years of experience in vehicle design, manufacture, sales and customer support.
- In-house production capabilities: The company has the ability to manufacture its own products on a non-commercial scale.
- Unique product offering: The Solo’s manufacturer suggested retail price of $18,500, prior to any surcharge for tariffs, is far below the retail price of EVs offered by those considered to be principal competitors.
ElectraMeccanica’s short-term goal is to commence and expand sales of the Solo while continuing to develop other EVs. The plan includes:
- Increasing orders for EVs: An online reservation system allows potential customers to reserve a Solo by paying a refundable $250 deposit, and a Tofino or Super Solo by paying a refundable $1,000 deposit.
- Having sales and services supported by local corporate stores: All cars will be monitored in real-time via telematics, which provide early warning of any potential maintenance issues.
- Expanding its product offering: In conjunction with the production and sale of the Solo, the company aims to continue developing other products, including the Tofino, a two-seater sports car in the expected price range of $50,000 to $60,000.
The company has received preorder bookings through an online “direct sales to customers and corporate sales” platform, as well as from a store and showroom at the company’s headquarters in Vancouver, British Columbia. The company plans to extend this model and launch similar stores in key urban areas. The first U.S. corporate store, located in Los Angeles, was recently opened.
Additional expressions of interest for the purchase of Solos, Tofinos and Super Solos have been received in the form of non-binding letters of interest, including deposits.
Paul Rivera, Chief Executive Officer, most recently served as President of Ricardo USA, a division of Ricardo PLC, a 100-year-old global engineering, strategic and environmental consultancy business with a value chain that includes the design, engineering, testing and launch of vehicle systems, as well as the niche manufacture of high-performance products. Rivera brings more than two decades of experience in technical consulting, engineering services, general management and global business development, as well as a deep understanding of engineering in the automotive, transport and energy industries, to ElectraMeccanica.
Bal Bhullar, Chief Financial Officer, has more than 20 years of diversified business, financial and risk management experience with both public and private companies. A Chartered Professional Accountant (CPA), Certified General Accountant (CGA) and Certified Risk Management (CRM) professional, Bhullar brings expertise in financial & strategic planning, operational & risk management, business expansion, start-up operations, financial modeling, program development, corporate financing, governance and internal controls.
Henry Reisner, President and Chief Operating Officer, oversees the design and production of ElectraMeccanica’s electric cars. Reisner is also the operator of Intermeccanica, a company with a 61-year legacy of custom-built sports cars for a global clientele. Intermeccanica was first located in Turin, Italy, and has operated in Vancouver, British Columbia, since 1982. It is now a wholly owned subsidiary of ElectraMeccanica Vehicles Corp. Reisner has substantial experience in the manufacture of high-end automobiles.
- The company’s flagship electric vehicle, the Solo, is positioned to revolutionize commuting, delivery and shared mobility.
- The company’s plans to mass produce electric vehicles in the near future, combined with its 61-year history of automotive design, manufacture and delivery, significantly differentiate it from other electric vehicle producers.
- ElectraMeccanica has received pre-order bookings through an online “direct sales to customers and corporate sales” platform and from a store and showroom at the company’s headquarters.
- The company’s extensive development capabilities, in-house production capacities and unique product offering make it an attractive investment candidate and a leading player in the EV sector.
- Allied Market Research projects the global electric vehicle market will reach $802.81 billion by 2027, registering a CAGR of 22.6 percent from the $162.34 billion reported in 2019.