ElectraMeccanica Vehicles Corp. (NASDAQ:
SOLO) ("ElectraMeccanica" or the "Company"), a designer
and manufacturer of electric vehicles, is providing an update
related to its ongoing search for the Company’s future U.S. based
assembly facility and engineering technical center.
Since late February, the Company has been
engaged with BDO USA’s Site Selection & Incentives Practice
(“BDO”) in a nationwide review of potential locations that matched
ElectraMeccanica’s criteria. BDO initially identified seven
candidates and sent initial requests for proposal to the chief
economic development entities in each state. In June, following
comprehensive proposal reviews and site visits at select locations,
the Company narrowed the candidate list to five. In August, the
list was further narrowed to three states.
Today, ElectraMeccanica has announced the
remaining two finalists as Arizona and
Tennessee.
Within each finalist state, the Company has
selected two finalist sites within the Phoenix, AZ metro area and
the Nashville, TN region, respectively. Along with BDO, the Company
is now conducting final site and proposal reviews before making a
selection at the end of November 2020.
The proposed new U.S. facility is expected to
create between 200 and 500 new jobs and feature a state-of-the art
engineering technical center, including plans for multiple labs to
support ongoing vehicle, chassis and power electronics testing as
well as comprehensive research facilities. ElectraMeccanica also
anticipates this new facility will generate additional, second
order effects that would positively impact the local and state
economy within its selected location through increased commercial
activity and its business partnerships with tier one suppliers. To
date, the Company has seen strong interest in the commercial fleet
and utility sectors, supporting its plans for a future pilot
SOLO ecosystem in the select region.
Collectively, the operation would be expected to
meet the growing demand for SOLO EVs throughout
the United States, where EVs are projected to exceed more than 30%
of all passenger vehicles by 20401. In addition to the SOLO being
classified as “Made in the USA,” the proposed new U.S.-based
facility would allow ElectraMeccanica to reduce or potentially
eliminate tariffs as well as benefit from logistical
efficiencies.
ElectraMeccanica intends to maintain a
capital-light model with its contract manufacturing partner and
strategic investor, Zongshen Industrial Group (“Zongshen”), in
Chongqing, China. In conjunction with the proposed new
ElectraMeccanica U.S. facility, Zongshen will continue to
manufacture SOLO EVs for the global market, while
also supplying knock-down kits for assembly in the United States.
The Company has begun commercial production with future deliveries
of the SOLO EV expected this fall.
“We have been very impressed with the locations and proposals
we’ve reviewed and are looking forward to reaching an agreement
that would mutually benefit both ElectraMeccanica as well as our
future state and local partners,” said Company CEO Paul Rivera.
“When fully operational, our facility should contribute hundreds of
jobs to the local economy as well as have a positive impact on the
community at-large. We are excited to be a part of the catalyst for
local and state initiatives to drive growth for the U.S. economy
and the EV sector.
“For ElectraMeccanica, we remain focused on
guaranteeing the key components that will position us for long-term
sustainability, most notably mitigating supply chain and tariff
risk, thereby enabling the SOLO to become an
American-made product. We also want to select a partner that will
work with us in establishing a major proof-of-concept for the
SOLO ecosystem with urban solutions for personal,
commercial, utility and fleet applications.”
Tom Stringer, Leader for the National Site Selection &
Business Incentives Practice, BDO USA, added: “Despite the
challenges of COVID-19 on the economy and the limits of domestic
travel this year, ElectraMeccanica’s project remains on track to
select a winner prior to year-end as originally planned. Our
ability to remain on track really is a tribute to how well our
state and local partners have fully embraced the regional economic
impact that the SOLO electrified ecosystem
represents. The potential new jobs, construction of engineering and
assembly centers, deployment of a pilot testing program, and the
migrating supply chain to support this project will collectively
serve as a game changer for the winning region.”
1 Electric Vehicle Outlook 2019, Bloomberg NEF
About ElectraMeccanica Vehicles
Corp. ElectraMeccanica Vehicles Corp. (NASDAQ:
SOLO) is a Canadian 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. The SOLO provides a
driving experience that is unique, trendy, fun, affordable and
environmentally friendly. InterMeccanica, a subsidiary of
ElectraMeccanica, has successfully been building high-end specialty
cars for 61 years. For more information, please visit
www.electrameccanica.com.
Safe Harbor StatementExcept 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.
Company ContactMs. Bal Bhullar,
CPA, CGA, CRMChief Financial Officer & Director(604)
428-7656Bal@electrameccanica.com
Investor Relations
ContactGateway Investor RelationsMatt Glover and Tom
Colton(949) 574-3860SOLO@gatewayir.com
Public Relations
ContactMichelle Ravelo-Santos R&CPMK(310)
854-4755michelle.ravelo@rogersandcowanpmk.com
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