ElectraMeccanica Vehicles ends 3Q with $229M in the bank as it prepares to ramp up SOLO production

ElectraMeccanica (NASDAQ:SOLO) Vehicles Corp ended its 3Q with a beefed-up cash position of $228.8 million, an increase from the $129.5 million it had in the bank at the end of 2020.

CFO Bal Bhullar told shareholders that the company’s cash balance helps it to build a strong platform for growth as it ramps up production of its flagship SOLO electric vehicle.

“Revenues from our initial commercial SOLO deliveries are being recognized in the fourth quarter and we expect these to begin scaling in the coming year,” Bhullar said in a statement.

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“With over $228 million on our balance sheet at the end of the third quarter, we’ve set the stage for growth as all of our focus turns towards ramping production and the buildout for our US base of operations in Mesa, Arizona.”

The Vancouver-based automotive company said it had increased its research and development spending to $5.3 million compared to $1.5 million in the same year-ago quarter, primarily due to expenses related to pre-production of SOLO and its eRoadster vehicles.

Sales and marketing expenses also grew to $2.5 million compared to $525,660 in the prior year-ago quarter as a result of an expanded sales team and the opening of multiple retail locations.

The firm posted an operating loss of $17.2 million compared to $6.5 million in the same year-ago quarter due to the higher R&D and marketing budgets.

“Our ability to leverage our strong balance sheet and world-class infrastructure to deliver SOLOs to reservation holders and fleet operators have positioned us to deliver long-term, sustainable value for our shareholders,” Bhullar added.

The SOLO is a three-wheeled single-passenger car that boasts a top range of 100 miles and speeds of 82 miles per hour on a 17.3-kilowatt-hour battery pack.

Since August 2020, ElectraMeccanica (NASDAQ:SOLO) has produced 182 SOLO electric vehicles.

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Story by ProactiveInvestors