ElectraMeccanica Reports Fourth Quarter and Full Year 2021 Financial Results
VANCOUVER, British Columbia, March 22, 2022 (GLOBE NEWSWIRE) — ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) (“ElectraMeccanica” or the “Company”), a designer and manufacturer of electric vehicles revolutionizing the urban driving experience, announced results for the fourth quarter and fiscal year ended December 31, 2021, together with its annual report on Form 20-F filed today.
Recent Company Highlights
Has delivered a total of 93 SOLO electric vehicles to customers, fleets and commercial customers since the start of deliveries in October 2021. Since the start of 2022, the company has delivered a total of 32 SOLO Electric vehicles to reservation and fleet holders starting February 28, 2022.
Fiscal 2021 revenue increased 270% to $2.1 million on initial sales of SOLO EV.
Unveiled its new global headquarters in Burnaby, BC – part of the Greater Vancouver area to support near-term growth plans.
Revealed that the company’s new 235,000 square foot US Assembly and Engineering Technical Center in Mesa, Arizona is on track and expected to be operational in the summer of 2022.
“The fourth quarter of 2021 was marked by our first deliveries of commercial SOLO EV to reservation holders and fleet customers as we transition to a well-capitalized, high-quality automotive OEM,” said Kevin Pavlov, CEO of ElectraMeccanica. “To support our production ramp-up and overall business success, we have transitioned to a new global headquarters in Burnaby, BC, serving as the epicenter for our growth initiatives. Additionally, we remain on track to complete our new 235,000 square foot US Assembly and Engineering Technical Center in Mesa, Arizona in the summer of 2022. Looking ahead, we are preparing our 2023 SOLO EV with validation tests in our new factory which will have the capacity to produce up to 20,000 vehicles per year. Going forward, we are committed to increasing sales and remain confident in our ability to grow into a full-scale production company with the world-class infrastructure, balance sheet and team in place to accomplish our mission. I look forward to providing additional updates in the coming months on our successes. »
Full Year 2021 Financial Summary (All amounts shown in USD)
Total revenue in 2021 was $2.1 million, compared to $569,000 in 2020. The increase in revenue is primarily attributable to initial sales from October 2021 of the Company’s flagship vehicle, the SOLO EV.
General and administrative expenses in 2021 were $31.1 million, compared to $15.8 million in 2020. The increase in general and administrative expenses was mainly due to the increase in rent related to the opening retail outlets and the company’s office in Mesa, Arizona, consulting services related to the Mesa assembly facility, office expenses due to the company’s enterprise resource planning system, and payroll expenses related to severance pay in addition to a number of new hires.
Research and development expense in 2021 was $17.1 million, compared to $8.7 million in 2020. Research and development expense relates to the electric vehicle segment as the Company continues to development of its SOLO, Tofino and e-Roadster products.
Sales and marketing expenses in 2021 increased to $10,413,748 from $2,635,134 in 2020. The Company began commercial production of our flagship vehicle, the SOLO, and the Company increased its sales efforts and marketing by developing brand assets, increasing its social media presence, opening retail kiosks, and rapidly growing its sales team.
Operating loss in 2021 was $60.8 million compared to $27.2 million in 2020. The increase in operating loss is mainly due to increased G&A, R&D expenses and sales and marketing.
Net loss in 2021 was $41.3 million, compared to $63.1 million in 2020.
Cash used in operations in 2021 was $60.4 million, compared to $22.5 million in 2020.
Bal Bhullar, Chief Financial Officer of ElectraMeccanica, added, “Revenues from our initial commercial production of our SOLO deliveries were accounted for in the fourth quarter, resulting in sales of over $1.5 million for the quarter. We expect sales to continue to increase throughout 2022, with expansion opportunities on the horizon as we ramp up production and complete construction of our US base of operations in Mesa, Arizona. We enter 2022 with $222 million in cash and cash equivalents on our balance sheet to carry forward as we ramp up production, deliver SOLO reservation holders and create long-term value for our shareholders.
About ElectraMeccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a Canadian designer and manufacturer of energy-efficient electric vehicles (EVs). The company’s flagship vehicle is the innovative, purpose-built single-seat electric vehicle called the SOLO. This three-wheeled vehicle will revolutionize the urban driving experience, including commuting, delivery and shared mobility. Designed for a single occupant, it offers a unique driving experience for the environmentally conscious consumer. the SOLO has a range of 100 miles and a top speed of 80 mph, making it highway safe. the SOLO also includes 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 combines a modern look with safety features at an accessible price of $18,500 for the consumer model and $24,500 for the delivery-focused model. SOLO Cargo model, which features an enlarged cargo bed to fit a wide variety of fleet and commercial applications. the SOLO is currently available to order here. For more information, please visit www.electrameccanica.com.
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Safe Harbor Statement
Except for statements of historical fact contained in this press release, the information set forth in this press release constitutes “forward-looking statements” as that term is used in applicable United States and Canadian securities laws. These statements relate to analyzes and other information based on forecasts of future results, estimates of amounts not yet determinable and management assumptions. Any statement that expresses or implies discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, or future events or performance (often, but not always, using words or phrases such that “anticipates”, “estimates”, “plans”, “expects”, “intends”, “intends”, “believes”, “plans”, “may”, “will”, or their negatives or other comparable words) are not statements of historical fact and should be considered “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. forward-looking statements. These risks and other factors include, among others, the prices of other electric vehicles, the costs associated with manufacturing vehicles, the availability of capital to fund business plans, and the resulting dilution caused by raising capital through the sale of shares, changes in the electric vehicle market, changes in government regulations, developments in alternative technologies, inexperience in servicing electric vehicles, labor disputes and other risks of the electric vehicle industry, including, without limitation, those associated with delays in obtaining government approvals and/or certifications. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause the actions, events or results are not those 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. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this press release and any document referred to in this press release. Forward-looking statements are made based on the beliefs, estimates and opinions of management as of the date the statements are made, and the Company undertakes no obligation to update any forward-looking statements if such beliefs, estimates and opinions or other circumstances were to change, except as required by applicable law. These forward-looking statements reflect our current views regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties described in our most recent financial statements and reports and the registration statement filed with the United States. Securities and Exchange Commission (the “SEC”) (available at www.sec.gov) and with Canadian securities regulators (available at www.sedar.com). Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be correct. Investors should consider all information presented herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time to time with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Company and there will be no sale of such securities in any jurisdiction in which such offer, solicitation or sale would be illegal prior to registration or qualification. under the securities laws of such jurisdiction.