Electrameccanica Vehicles Stock

ElectraMeccanica North America Corp. engages in the development and manufacturing of electric vehicles (EVs). The company operates as a subsidiary of Xos, Inc.

The company has historically designed and manufactured smaller, simpler and purposeful EVs primarily targeted for the U.S. market through direct marketing and sales to consumers and small businesses. The company’s initial product was the three-wheel, single-seat, SOLO. However, given the significant challenges experienced by customers in purchasing, financing, insuring and after-sale servicing of a three-wheel autocycle, such as the SOLO, at the end of 2022, the company made the strategic decision to cease production of the SOLO and focus its efforts and resources on a new four-wheeled electric passenger vehicle, which was referred to as ‘Project E4’ or ‘E4’.

In February 2023, the company announced a voluntary recall of the SOLO due to an unidentified technical issue that resulted in loss of propulsion while driving in certain vehicles at certain times. In April 2023, the company decided to offer to repurchase all 429 previously retailed SOLO vehicles to ensure the safety of its customers, of which the company has made refund payments for 392 vehicles returned by customers as of December 31, 2023.

In March 2023, the company began exploring other strategic third-party opportunities and potential options for its business, which included, but were not limited to, mergers or acquisitions of other assets or entities, collaborations, including partnerships and joint ventures, divestitures, and other potential transactions that could complement, expand, enhance, or realign the company’s existing know-how, technology, development efforts, and/or market presence.

In August 2023, the company determined not to pursue its previously announced plan to develop and sell the E4 because of the significant costs to design, develop, manufacture, sell, support, and service the E4, as well as the company’s decision to explore strategic alternatives for its business.

On August 14, 2023, the company and Tevva Motors Limited (‘Tevva’) signed an arrangement agreement (‘Tevva Arrangement Agreement’) and other ancillary agreements to merge the two companies into a newly created parent company (the ‘Tevva Arrangement’). On October 4, 2023, the company terminated the Tevva Arrangement Agreement as a result of multiple incurable breaches of the Tevva Arrangement Agreement by Tevva, including failures by Tevva to disclose material information about Tevva to the company.

Following the termination of the Tevva Arrangement Agreement, the company resumed the strategic process initiated earlier in the year. The company considered companies that had been previously considered and also considered new potential counterparties. The company was particularly interested in the electric commercial vehicle segment because of perceived regulatory tailwinds and suitability for electrification.

In 2023, the company also explored assembling EVs for other EV companies in its recently commissioned and state-of-the-art 235,000 square foot facility located in Mesa, Arizona. However, the company recently determined to no longer pursue the EV contract assembly business following the company’s decision to discontinue manufacturing activities in Mesa, Arizona, and the company has subsequently determined to sub-lease the Mesa, Arizona manufacturing facility and the Huntington Beach, California facility in 2024.

Research and Development

The company's research and development expenses were $9,154,084 for the year ended December 31, 2023.

History

The company was founded in 2015. It was incorporated in 2015 under the laws of the province of British Columbia, Canada. The company was formerly known as ElectraMeccanica Vehicles Corp. and changed its name to ElectraMeccanica North America Corp. in March 2024.