ElectraMeccanica Vehicles Corp (NASDAQ:SOLO) CEO Paul Rivera told shareholders on Tuesday that the electric car maker is in the “final stages” prior to kicking off production of its three-wheeled SOLO electric vehicle.
In a statement accompanying the Vancouver-based company’s second-quarter results, Rivera said: “We are now in the final stages prior to commencing initial production of the SOLO, with first US deliveries still on track for late 2020.”
He added: “Heading into the second half of the year, we are well-positioned for full-scale deployment of the SOLO with a robust, growing retail footprint across the western US in conjunction with an aggressive marketing campaign to educate the buyer. Interest in our vehicles and an anticipation for their arrival is at an all-time high.”
ElectraMeccanica stock recently traded 3.2% higher to $2.89 a share in the pre-market trading session in New York.
The ElectraMeccanica boss said the firm had achieved "important progress" during the quarter toward the production launch of the SOLO, with initial planned deliveries in the Los Angeles market followed by rollouts in other west coast cities. Rivera also believes the SOLO can solve transportation issues while we are in the middle of the coronavirus pandemic.
“The SOLO drive experience offers a unique and timely urban solution for personal, commercial, utility, and fleet applications. In today’s uncertain climate, consumers and businesses alike are looking for personal transportation in a safe, secure and self-contained driving environment. The SOLO could not be coming online at a better time,” he added.
During its second quarter ended June 30, 2020, ElectraMeccanica closed $20 million in market financing through a registered direct offering, resulting in net proceeds to the company of around $18.65 million. The company said the funds will be used for sales and marketing, further product development, operational expenditures and for general corporate purposes.
During the quarter, the electric car maker announced a new cost-effective aluminum chassis for the SOLO, developed with a tier-one global engineering partner.
The company posted revenue in the second quarter of C$0.02 million, compared to C$0.2 million in the same period a year earlier. The decrease in revenue was primarily due to a dip in custom-built roadsters that were produced.
The company kept a firm grip on R&D expenses in the second quarter which came in at C$1.9 million. The company posted an operating loss in the second quarter of C$6.1 million, compared to an operating loss of C$4.9 million in the second quarter of 2019.
ElectraMeccanica had cash, equivalents and short-term deposits of C$51.3 million as of June 30, 2020, compared with C$11.1 million in December 2019.
Cash used in operations in the second quarter was C$5.7 million, compared with C$8.2 million used in the same period in 2019.
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