VANCOUVER — Electric-vehicle startup Electra Meccanica has put its first production Solo single-seat car into the hands of a paying Canadian customer but its certification efforts for the U.S. market continue.
“The first 40 or 50 cars will all be [delivered] in the Greater Vancouver area, in case there are any [production] issues,” said company CEO Jerry Kroll.
Regarding U.S. certification: “We should be done by mid-August and I plan on shipping cars down to America in Q4 this year,” he said. “We have a lot of orders in the States.”
Electra Meccanica’s common shares were also approved in June for trading in the United States under the symbol ECCTF. Kroll said the company initially raised $11 million from its stock offering.
The locally built three-wheel EV, priced at about $20,000, boasts a 160-kilometre range and top speed of 130 km/h.
THE FIRST SOLOISTS
Leona Green and her son Matthew, who run the Greens and Beans deli in suburban New Westminster, B.C., received their green Solo in late June, Kroll said.
“They got it for their personal use and for delivering catering to their customers,” he said.
The Greens were first on Electra Meccanica’s reservation list, waiting two years for the vehicle.
The automaker announced a second delivery on its Facebook page on July 7.
EARLY LOSSES ANTICIPATED
The company reported a net loss of almost $9 million for 2016 as it ramped up production of the Solo, compared with a roughly $1-million loss in 2015.
In a recent filing to U.S. securities regulators, Electra Meccanica warned it expected to continue incurring losses as it develops and markets the Solo.
The company’s auditor noted in the annual financial statement the need to generate profit from operations and/or raise money through equity capital, or borrow to meet its future obligations.
“These factors indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the auditor’s note read.
Electra Mechanic said it seeks to finance operations this year through private equity placements.