ElectraMeccanica Recalls Every Three-Wheeled EV Sold Since 2019
A Canadian startup, ElectraMeccanica, has announced plans to buy back all of the three-wheeled electric vehicles it has sold since 2019. The company, which only sold its vehicles in the United States, has taken this action following a recall due to a sudden loss of power.
The recall of the single-passenger vehicle, called the Solo, was announced in February, and the cause of the defect remains unknown. ElectraMeccanica estimates the buyback will cost it $8.9 million, according to a Form 10-K filing with the U.S. Securities and Exchange Commission seen by Autonews Canada.
The Solo is a three-wheeled electric commuter vehicle, and 429 of them will hit the road between 2019 and 2023. ElectraMeccanica also has another 800 unsold units that, with an MSRP of $18,500 each, have a total value of $13.8 million in unrealized sales.
ElectraMeccanica sought the assistance of the Chinese company Zongshen for the initial production of the Solo. However, the former has expressed its intention to file claims against the latter for defects related to the production. It is not certain whether these defects are the reason for the recall. Despite the expenses incurred, ElectraMeccanica has sufficient financial resources to survive the next 12 months. In addition, the company is committed to producing Volcon vehicles at its Mesa, Arizona facility, which will provide a stable source of revenue.
The company plans to add a four-wheel model to its product line. The new design is expected to address owners’ insurance concerns and qualify them for federal EV tax credits. The three-wheeled Solo was excluded from the credits.
ElectraMeccanica co-founder and director Jerry Kroll aims to close the last gas station by promoting electric vehicles, regardless of the number of wheels. To focus its resources, the company will close InterMeccanica, a related company in British Columbia, Canada, and concentrate operations in Mesa, Arizona, resulting in the elimination of 98 jobs.
