ElectraMeccanica (NASDAQ:SOLO) Vehicles Corp has said its revenue for the full year ended December 31, 2021, jumped by 270% after the company began first deliveries of its flagship electric vehicle (EV) SOLO in October last year.
Revenues rose to US$2.1 million in 2021, up from US$569,000 in 2020, with the fourth quarter accounting for US$1.5 million of sales, the company said in its earnings release.
ElectraMeccanica has delivered 93 SOLO EVs to customers and fleet and commercial customers since deliveries began. Year-to-date for 2022, the company has delivered a total of 32 SOLO EVs to reservation and fleet holders as of February 28, 2022.
"The fourth quarter of 2021 was highlighted by our first deliveries of the commercial SOLO EV to reservation holders and fleet customers as we transitioned to a well-capitalized, high-quality automotive OEM," said Kevin Pavlov, CEO of ElectraMeccanica in a statement.
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ElectraMeccanica said sales are expected to continue growing in 2022 as the company ramps up production and completes its new 235,000 square foot US assembly and engineering technical center in Mesa, Arizona, which is on track and scheduled to be commissioned in the summer of 2022.
“Looking ahead, we are readying our 2023 SOLO EV with validation testing at our new facility which will have the ability to produce up to 20,000 vehicles annually,” added Pavlov. “Moving forward, we are committed to increasing sales and remain confident in our ability to expand into a scaled production enterprise with the infrastructure, balance sheet and world-class team in place to achieve our mission. I look forward to providing additional updates in the months to come on our successes."
Bal Bhullar, ElectraMeccanica's CFO, added: “We enter 2022 with US$222 million in cash and cash equivalents on our balance sheet to carry us forward as we scale production, deliver SOLOs to reservation holders and build long-term value for our shareholders."
Operating losses in 2021 increased to US$60.8 million from US$27.2 million in the preceding year, following rises in administrative, research and development (R&D), and sales and marketing costs related to the opening of retail locations and the Mesa office, product development of the SOLO, Tofino and e-Roadster vehicles, and increased marketing efforts.
R&D costs climbed to US$17.1 million from US$8.7 million, while sales and marketing expenses increased to US$10.4 million from US$2.6 million. The net loss in 2021 reduced to US$41.3 million from US$63.1 million in 2020. Cash used in operations in 2021 was US$60.4 million, compared to US$22.5 million the year before.
ElectraMeccanica Vehicles is a Canadian designer and manufacturer of environmentally efficient EVs. The company's flagship vehicle is the innovative, purpose-built, single-seat EV 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. The SOLO has a range of 100 miles and a top speed of 80 mph, making it safe for highways. 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.
The SOLO blends a modern look with safety features at an accessible price point of $18,500 for the consumer model and $24,500 for the delivery-oriented SOLO Cargo model, which features an expanded cargo box to accommodate a wide variety of fleet and commercial applications.
Contact the author at jon.hopkins@proactiveinvestors.com