The company announced on Monday that it has received over 64,000 vehicle preorders, resulting in US$2.4 billion in potential sales.
The company, engaged in the design and manufacturing of electric vehicles, said as of October 22, out of those preorder numbers, 23,030 are for SOLO with the remainder being for the Tofino.
SOLO, a single seater electric vehicle is the company’s answer to be a major force in the electric vehicle market and is scheduled for deliveries in the fourth quarter of 2018.
Electra Meccanica is aiming for the manufacturer’s suggested retail price (MSRP) of US$15,500 for the SOLO with preorders requiring a refundable deposit of US$250.
“These orders represent $2.4 billion in potential sales at the expected vehicle MSRPs, presenting a large market for us to address as we scale vehicle production with our strategic manufacturing partner,” Jerry Kroll, CEO of Electra Meccanica, said in the release.
The company has an agreement with Chongqing Zongshen Automobile (SZSE:001696), the largest manufacturer of motorcycles and motorcycle engines in China, for the production of 75,000 SOLO vehicles.
Chongqing Zongshen, which is scheduled to produce these vehicles over a three-year period, owns 10.6 percent of Electra Meccanica common stock.
“We are focused on delivering an exhilarating yet affordable electric vehicle experience to consumers and businesses nationwide,” Kroll said. “We are on the cusp of achieving our vision and I believe we are well-positioned to build shareholder value over the long-term.”
As part of its plan to target businesses, Electra Meccanica announced in September a collaboration with 7-Eleven Canada. The company noted that the partnership has the potential to expand in the future, including the companies evaluating the use of SOLO for use in local delivery of packages.
Notably, the bulk of the preorders announced on Monday are for the company’s two-seater sports car Tofino, with scheduled deliveries slated for 2020. With an MSRP of US$50,000, Tofino preorders is at 41,124 units with a US$1,000 required deposit from those looking to reserve the vehicle.
In September, Kroll spoke to the Investing News Network (INN) and revealed that Tofino has received interest not just from consumers but also manufacturers.
“There’s a large amount of big players looking to work with us on that vehicle,” Kroll told INN at the time.
Kroll told INN that the company has had “massive success” in preorders for the sports car. Specifications include performance between 0-100 kilometers per hour (kph) in seven seconds with a total range of 400 KM.
Following the announcement, shares of Electra Meccanica jumped over 108 percent and closed the trading session on Monday at US$4.55. The stock, which had a previous close of US$2.18, opened the trading session on Monday at US$5.60. Shares of the company had a day high of US$7.48 and a low of US$4.08. Electra Meccanica has a “Buy” ranking on TradingView with 15 verticals in favor, seven in neutral and four against.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.