ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) (“ElectraMeccanica” or the “Company”), a designer and manufacturer of electric vehicles revolutionizing the urban driving experience, today announced cost-reduction initiatives to further streamline the business in order to better consolidate onshore manufacturing capabilities and operations at its newly-commissioned Mesa, Arizona headquarters. These steps will accelerate the Company’s path to profitability, by imposing a new level of fiscal discipline that preserves the ability to commercialize and scale operations while also eliminating excess costs.
Since coming on board at ElectraMeccanica on December 5, 2022, new CEO/interim COO Susan Docherty has led an ongoing, top-to-bottom review of the Company’s existing operations footprint; product portfolio; product development; investment; capital allocation; and employee skills, distribution and efficiency. While this review is ongoing, the Company currently has elected to resize its workforce, lowering its headcount by 98 positions. This reduces the employee base outside Arizona by 57% and improves operating costs by approximately $10 million annually. The Company notes that its balance sheet and market demand for the SOLO remain healthy.
Separately, the Company announced it had appointed Ms. Docherty to its Board of Directors effective December 20, 2022. Additionally, as another outcome of its top-to-bottom review of the business, ElectraMeccanica is postponing its Investor Day until June 14, 2023, in order to focus exclusively on near term execution and so that it can provide the most comprehensive possible review of its business and future plans to shareholders.
