Electrameccanica Vehicles Corp (SOLO)

[dcvancity]

Looks like a lot of people woke up this morning and decided enough was enough.

The biggest red flag is that even Jerry is no longer claiming a number as to how many cars they will produce by years end.

Now only saying,

"we continued to prepare for the mass production ramp that we expect to take place in the second half of 2019,” said Jerry Kroll, CEO of Electra Meccanica. “We continued early-stage production at our state-of-the-art production facility in Chongqing, China with our strategic partner, while laying the groundwork to allow for automated mass production later this year."

Does this mean they are now backing off manufacturing 5,000 by years end? I always thought this was a crazy committment given their inexperience with mass production. Have they come to their senses? If so, what is the new committment?

There was also no material increase in orders.
They have had over 64,000 orders on the books for more than a year now. And more than 2/3 of them are for Tofinos.
As per the recent Annual Report MD&A, they are not even expected to have the first prototype of the Tofino for another year. So based on the Solo timeline, they are 3 or more years away from mass production.

Given their increased burn rate, the 25% tariff on Chinese cars, and the issues with Solo production, they may well be broke well before then.