ElectraMeccanica Announces Cost Reduction Initiatives to Streamline and Accelerate Onshore Manufacturing
December 22 2022 - 7:04PM
Business Wire
Company Consolidates Operations at Mesa HQ;
Reduces Majority of Headcount Outside Arizona
Actions Improve Operating Costs by
Approximately $10M Annually and Increase Fiscal Discipline Without
Compromising Ability to Further Commercialize and Scale
CEO Susan E. Docherty Appointed to
ElectraMeccanica Board
Investor Day Postponed To June 14, 2023 In
Order To Focus on Near Term Execution
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
(“ElectraMeccanica” or the “Company”), a designer and manufacturer
of electric vehicles revolutionizing the urban driving experience,
today announced cost-reduction initiatives to further streamline
the business in order to better consolidate onshore manufacturing
capabilities and operations at its newly-commissioned Mesa, Arizona
headquarters. These steps will accelerate the Company’s path to
profitability, by imposing a new level of fiscal discipline that
preserves the ability to commercialize and scale operations while
also eliminating excess costs.
Since coming on board at ElectraMeccanica on December 5, 2022,
new CEO/interim COO Susan Docherty has led an ongoing,
top-to-bottom review of the Company’s existing operations
footprint; product portfolio; product development; investment;
capital allocation; and employee skills, distribution and
efficiency. While this review is ongoing, the Company currently has
elected to resize its workforce, lowering its headcount by 98
positions. This reduces the employee base outside Arizona by 57%
and improves operating costs by approximately $10 million annually.
The Company notes that its balance sheet and market demand for the
SOLO remain healthy.
For more information, please visit: bit.ly/3BTc9je.
Separately, the Company announced it had appointed Ms. Docherty
to its Board of Directors effective December 20, 2022.
Additionally, as another outcome of its top-to-bottom review of the
business, ElectraMeccanica is postponing its Investor Day until
June 14, 2023, in order to focus exclusively on near term execution
and so that it can provide the most comprehensive possible review
of its business and future plans to shareholders.
About ElectraMeccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a designer and
manufacturer of environmentally efficient electric vehicles (EVs).
The company’s flagship vehicle is the innovative, purpose-built,
single-seat EV called the SOLO. This three-wheeled vehicle will
revolutionize the urban driving experience, including commuting,
delivery and shared mobility. Engineered for a single occupant, it
offers a unique driving experience for the environmentally
conscious consumer. Depending on driving conditions, temperature
and climate controls, the SOLO has a range of up to 100 miles and a
top speed of up to 80 mph. The SOLO also features front and rear
crumple zones, side impact protection, roll bar, torque-limiting
control as well as power steering, power brakes, air conditioning
and a Bluetooth entertainment system. It blends a modern look with
safety features at an accessible price point of $18,500 (MSRP) for
the consumer model and $24,500 (MSRP) for the delivery-oriented
SOLO Cargo model, which features an expanded cargo box to
accommodate a wide variety of fleet and commercial applications.
The SOLO is currently available for order here. For more
information, please visit www.electrameccanica.com.
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release and oral statements
made from time to time by representatives of the Company are or may
constitute “forward-looking statements” as such term is used in
applicable United States and Canadian laws and including, without
limitation, within the meaning of the Private Securities Litigation
Reform Act of 1995, for which the Company claims the protection of
the safe harbor for forward-looking statements. These statements
relate to analyses and other information that are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as “expects” or “does not expect,” “is expected,”
“anticipates” or “does not anticipate,” “plans,” “estimates” or
“intends,” or stating that certain actions, events or results
“may,” “could,” “would,” “might” or “will” be taken, occur or be
achieved) are not statements of historical fact and should be
viewed as forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the availability of capital to fund programs
and the resulting dilution caused by the raising of capital through
the sale of shares, accidents, labor disputes and other risks of
the automotive industry including, without limitation, those
associated with the environment, delays in obtaining governmental
approvals, permits or financing or in the completion of development
or construction activities or claims limitations on insurance
coverage. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Although the Company believes
that the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved. Forward-looking information
is subject to certain risks, trends and uncertainties that could
cause actual results to differ materially from those projected.
Many of these factors are beyond the Company’s ability to control
or predict. Important factors that may cause actual results to
differ materially and that could impact the Company and the
statements contained in this news release can be found in the
Company’s filings with the Securities and Exchange Commission. The
Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. Accordingly, readers should not place
undue reliance on forward-looking statements contained in this news
release and in any document referred to in this news release. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities.
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version on businesswire.com: https://www.businesswire.com/news/home/20221222005575/en/
PR/IR Contact
John Franklin Sinter ir@emvauto.com
Electrameccanica Vehicles (NASDAQ:SOLO)
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