INVESTOR PRESENTATION - SEPTEMBER 2021 ElectraMeccanica Vehicles Corp - cloudfront.net
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INVESTOR PRESENTATION
SEPTEMBER 2021
ElectraMeccanica
Vehicles Corp.
NASDAQ: SOLO
@ElectraMeccanica facebook.com/EMVsolo @ElectraMeccanica @ElectraMecc
DISCLAIMER
FORWARD-LOOKING STATEMENTS
This presentation (the “Presentation”) by ElectraMeccanica Vehicles Corp. (the “Company”) provides a general overview of corporate and financial information regarding the Company. The information has been presented
in summary form and does not purport to be complete. It is not intended for the following information to be construed as legal, financial, tax or investment advice. Some of the statements contained in this Presentation are
“forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) which are based upon the Company’s current expectations, estimates, projections, assumptions and beliefs
made by management. Such statements can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, or “anticipate”, “potential”, “proposed”, “estimate” and
other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking information include
estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Such forward-looking information is made as of the date of this Presentation, or in the
case of documents incorporated by reference herein, as of the date of each such document. These statements and information are only predictions based on current information, knowledge and reasonable assumptions,
some of which may be attributed to third party industry sources. Such forward-looking information should not be in any way construed as guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking information. Accordingly, readers should not place undue reliance on such forward-looking information, as there can be no assurance that the plans, intentions or expectations
upon which they are based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility
that the predictions, forecasts, projections and other forward-looking information will not be realized. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the
experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward-looking
information included in this Presentation, the Company has made various material assumptions, including, but not limited to: (i) obtaining the necessary regulatory approvals or permits; (ii) that regulatory requirements will
be maintained; (iii) general business and economic conditions; (iv) the Company’s ability to successfully execute its plans and intentions; (v) the availability of financing on reasonable terms; (vi) the Company’s ability to
attract and retain skilled staff; (vii) market competition; (viii) the products and technology offered by the Company’s competitors; and (ix) that the Company’s current good relationships with its service providers and other
third parties will be maintained. While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed
or implied by the forward-looking information. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse automotive industry events; marketing
costs; loss of markets; future legislative and regulatory developments involving electric vehicles; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on
favorable terms; the electric vehicle industry in North America generally; tariffs and other international trade matters; the ability of the Company to implement its business strategies including expansion plans; competition;
currency and interest rate fluctuations, and the other risks discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F and subsequent quarterly reports included in Form 6-K filed
with the United States Securities and Exchange Commission (the “SEC”) and available on EDGAR at www.sec.gov. The foregoing factors are not intended to be exhaustive. The Company does not intend, and does not
assume any obligation, to update the forward-looking information, except as required under applicable securities legislation. For more information on the Company, readers should refer to www.sedar.com for the
Company’s filings with the Canadian securities regulatory authorities and to www.sec.gov for the Company’s filings with the SEC. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any
securities of the Company.
© ElectraMeccanica Vehicles Corporation – 2021
2
COMPANY OVERVIEW
ELECTRAMECCANICA VEHICLES CORP.
ElectraMeccanica is a The Company’s The SOLO provides ElectraMeccanica The Company’s Highly experienced
Canadian designer & flagship vehicle is the an exciting driving maintains an asset- Assembly Facility and management team
manufacturer of electric innovative, purpose- experience that is light contract Engineering Technical with significant
vehicles (EVs) designed to built, single-seat unique, trendy, fun, manufacturing model Center is slated to beneficial insider
revolutionize commuting, electric vehicle called affordable & with strategic partner finish construction in ownership.
delivery the SOLO. environmentally friendly. Zongshen Industrial 2022, providing an
and shared mobility. Group and has been in increased capacity and
production since domestic base of
August 2020. operations.
3
COMPANY OVERVIEW
ELECTRAMECCANICA VEHICLES CORP.
Key Geographic Locations:
Vancouver, B.C.: U.S Retail: Chongqing, China: Mesa, Arizona:
Company HQ and R&D Retail locations and service / Contract manufacturing with Assembly and engineering
facility distribution centers in Arizona, strategic partner and wholly- technical center; broke
Colorado, California, Oregon owned subsidiary (EMV ground in May 2021
and Washington Automotive Technology, Inc.)
4
REDEFINING TRANSPORTATION
SOLO DRIVE
Micro Mobility Drive Passenger Vehicles
û Lack of safety or protection features Purpose-built solution for the û Expensive and higher cost of
û Users are exposed to the elements modern urban environment- ownership
The SOLO ECO System û Oversized powertrain and vehicle for
û Minimal technology integration
majority of uses
û Very limited range
û Requires dedicated Level II or Level III
charging infrastructure
Vehicles pictured: Tesla Model 3 and Chevy Bolt 5
PRODUCT DEVELOPMENT
EVOLUTION OF THE SOLO
Prototype Pre-Production Production
2015—2019 2019—2020 2020—Present
• 64 prototype vehicles produced • 60 pre-production SOLO’s produced • Capable of producing up to 20,000
SOLO’s Annually
• Hand-built in ElectraMeccanica’s • Manufactured by our strategic partner,
Vancouver facility Zongshen Industrial Group, in China • Manufactured out of dedicated SOLO
facility by Zongshen
• Delivered to “early adopters” and been • Deployed throughout the U.S., Canada &
in circulation for 3+ years without China for final on-road validation testing • Production began August 26, 2020
incident
6
REDEFINING URBAN MOBILITY
PURPOSE-BUILT FOR URBAN DRIVING
The Case for SOLO EV
42 miles Average commute each day
for work(1)
76% Of people who travel to work do
so by themselves in a personal
vehicle(2)
2X The average cost to drive the same
number of miles in an ICE vehicle when
compared to EVs(3)
Under-utilized capacity, and cargo
space with today's passenger vehicles
…and everything else you do solo
(grocery shop, gym, coffee, visit
friends, or to just be alone)
1. TrueCar Study Analysis of the American Community Survey, U.S. Census; May 2017
2. U.S. Census 2016
3. U.S. Department of Energy, eGallon: Compare the costs of driving with electricity; October 2019
7
5-YEAR
TOTAL COST OF OWNERSHIP COMPARISON
Mini Cooper SE Nissan Leaf EV Chevy Bolt EV Tesla Model 3
Base MSRP $18,500 $30,750 $31,670 $35,195 $39,990
Federal Tax Credit 0 (7,500) (7,500) 0 0
Clean Fuel Reward (California) (1,500) (1,500) (1,500) (2,000) (2,000)
Clean Vehicle Rebate (California) (750) (2,000) (2,000) (1,500) (1,500)
Insurance 4,080 4,177 7,850 7,904 4,006
Maintenance 1,459 1,300 3,441 3,040 1,100
Repairs 444 508 773 933 100
Taxes & Fees 1,240 1,967 3,793 4,580 2,635
Financing 2,886 5,258 4,929 5,736 5,905
Depreciation 9,068 15,067 16,933 10,655 19,405
Level 2 Charger 0 2,000 2,000 2,000 2,000
Fuel 1,856 2,440 5,060 4,761 2,549
®
Total Cost to Own $20,283 $23,217 $42,779 $37,609 $35,700
TOTAL COST $37,283 $52,467 $65,449 $71,304 $74,190
Premium over SOLO 40.7% 75.5% 91.3% 99.0%
8
Source: Competitor information from Edmunds.com and manufacturer’s websites; Based on a 5-year estimate with 15,000 miles driven per year; SOLO figures based on management estimates using comparable methodology.
SHIFTS IN
TRANSPORTATION
BEHAVIORS
THE OPPORTUNITY IS NOW
345K+ 140%
New EVs sold in 2020 YOY increase in
micromobility usage
(Source: BlastPoint) pre-COVID
(Source: NACTO)
Access to micro mobility options are
important
(Source: McKinsey)
9
In 2018, global EV sales totaled New EV sales will surpass new ICE vehicle sales by
2.1 million 2030 2
(the U.S. increased sales of EVs 81% in 2018)1
MACRO-ECONOMIC TAILWINDS
THE GROWING EV & California continues to play an outsized role in
growing the electric vehicle market; generating
By 2040, over 500 million passenger EVs will
be on the road globally, accounting for over
RIDESHARE MARKET ~50% 30%
of EV sales in the U.S in 20173 of all passenger vehicles4
The market penetration and disruption of the ridesharing
and
micro- mobility industries has caused a proliferation of
Today, EVs account for 1.8% of the shared mobility EV Production in North America is expected
service platforms vying to meet the ever-increasing
fleet (taxi’s, ride-hailing & car-sharing), growing to to increase at a CAGR of
demand for mobility solutions.
80% ~42%
of the shared mobility fleet by 20404 from 2021-20276
1. Electric Vehicle Sales: Facts & Figures, EdisonElectric Institute
2. Automotive News, January 2020
3. TheInternational Council of Clean Transportation, May 2018
4. Electric Vehicle Outlook 2019, Bloomberg NEF
5. U.S. EPA national electricity generation data, March 2018 10
6. Strategy& Electric Vehicle Infrastructure Perspective, 2021TARGETED MARKETS
THE SOLO ECOSYSTEM
SOLO UTILITY:
FLEETS
SOLO DRIVE:
URBAN COMMUTERS Three primary market
segments for the flagship
SOLO EV
SOLO SHARE:
SHARED MOBILITY
11WA
MODERN
RETAIL OR
DIRECT TO
CONSUMER
• Retail Centers in 5 U.S.
states, 10 metropolitan
areas
• West Coast Focus CO
• 200-400 sq. ft. CA
Modular, mobile, high-
traffic boutique style AZ
retail kiosks
12UNTAPPED POTENTIAL FOR
COMMERCIAL AND FLEET APPLICATIONS
Opportunity for SOLO commercial and fleet applications:
• Pick-up and delivery, small parcel and post, tech and repair, security patrol
• The last mile delivery market in North America size is poised to grow by USD
44.88 billion during 2020-2024*
(*Source: Technavio 2020)
Global EV fleets will grow
from 8.5M in 2020 to 116M in 2030
(Source: Bloomberg NEF Electric Vehicle Outlook 2020)
13TOP-TIER PARTNERS
ASSET-LIGHT MANUFACTURING
• The SOLO is being manufactured in Chongqing, China, by a
subsidiary of our strategic partner, Zongshen Industrial Group1:
• China’s top manufacturer of two & three-wheeled vehicles
• Produces 2+ million units annually across 130 models
• 50+ joint ventures with recognized global brands
• Mitigated production risk and reduced CapEx
• U.S. Assembly Facility and Engineering Technical Center
• State-of-the-art engineering technical center
• Light vehicle assembly facility
• Hub for SOLO Share ecosystem pilot program
• Construction underway in Mesa, AZ
• Currently ramping up engineering, processing and
delivery employee base at TDI facility in Mesa, AZ
1. Information provided by management of Zongshen.Significant Media Coverage
FORWARD-THINKING
MARKETING
STRATEGY
Rolling out an exciting integrated brand
identity that reflects a forward-thinking,
dynamic, growth-oriented electric
vehicle company
The ongoing campaign includes building
awareness through digital marketing,
influencers, revamped website,
billboard, print and traditional media
advertisements.
“This is the future of electric vehicles.”
FOX Business, March 2021
15DEFINED
PATH TO PROFITABILITY
Scale Production and Establish SOLO Ecosystem
• Ramp up production volume in Zongshen and begin customer deliveries to work through the outstanding backlog
• Establish direct-to-consumer retail locations across the country,
beginning in high-value, eco-friendly markets
• Employ drive, share and fleet customer book to form strategic alliances
and generate partnerships in new regions, starting with the Mesa, AZ pilot program
Improve Cost Structure and Evolve Product Line
• Streamline operations going forward and reduce bill of materials for
future vehicle production lines, recoup overhead costs as production volumes increase
• Leverage buying power from suppliers to improve cost basis
• Introduce a next-generation global version of the SOLO to meet emerging market demand
Build U.S. Base of Operations
• Improve capacity by assembling knock-down kits from Zongshen
• Create logistical efficiencies, reduce supply chain risk
• Enhance manufacturing and automation capabilitiesTrading Statistics
Stock Price1 Market Cap1 Average Volume1 (3 month) Shares O/S2 Fully Diluted Shares O/S2
$3.44 $390.4M 2,441,135 113.5M 138.7M
KEY STATISTICS
Company Specifics2
COMPANY, STOCK
Employees Incorporated
& FINANCIALS 205
HQ
Vancouver, BC 2015
Financials2 Company Ownership2
Beneficial Insider
Cash Long Term Debt Public Float
Ownership
$250.0M $0 15.8% 85%
1. As of September 22, 2021
2. As of June 30, 2021 17WHY SOLO?
KEY TAKEAWAYS
ElectraMeccanica SOLO Drive is a SOLO ECO Poised to Asset-light Strategic launch Highly
is a Canadian purpose-built, system is the capitalize on manufacturing roll-out with a experienced
designer & economic ideal solution for substantial with recognized forward- management
manufacturer – solution for urban personal, ride macro- strategic thinking team focused
NOT just driving challenges sharing and fleet economic partner, marketing on growth and
another EV applications tailwinds Zongshen strategy execution
18APPENDIX
VEHICLE SPECIFICATIONS
THE SOLO
Cost Powertrain Colors Charging Times Exterior
• MSRP: $18,500 USD • 17.5 KWh NCA Battery • Electric Red • 220 V (Level 2): • Heated External
• Financing available Liquid Cooled • Raven Black 2.5 hours for 15% - 90% Mirrors
through Freedom • Rear Wheel Drive • Arctic White • 110 V (Level 1): • LED Headlamps
Financial • 55 HP Liquid Cooled Motor • Iridium Silver 8 hours for ~60% • Daytime Running
• 103 ft-lbs Torque Lights
Interior Performance
• Up to 100 Mile Range1
• LCD Digital
• 0-60 mph: 10 Seconds1
Instrument Cluster
• Top Speed: 80 mph1
• Remote Keyless
• Curb Weight: 1770 lbs1
Entry
• Lightweight Aerospace
• Power Windows
Chassis
• Intermittent
Wipers
• AM / FM /
Bluetooth / USB Dimensions
• Air Conditioning • Length: 122 in
• Upgraded Vinyl • Width: 61.4 in
Heated Seat • Height : 53 in
• Rear View Backup • Wheelbase: 80.5 in
Camera • Front Tires: 135-70-R15
• Power Steering / • Rear Tires: 215-40-R16
Power Brakes • Cargo Space: 5 cubic ft
1. Specifications are subject to change without notice.
Prices are in US dollars and do not include any applicable taxes. Financing available OAC. 20IN PICTURES
THE SOLO
Front Back Grill
HMI Interior Fleet
21REQUIREMENTS
CURRENT U.S. MARKET ACCESS
$2,500 State Incentive
$1,500 Clean Fuel Reward
$750 Clean Vehicle Rebate
22
Information provided for general reference only; vehicle operators should always consult their local authority to confirm licensing
requirements.POLICY DRIVING GROWTH
GLOBAL EV MARKET ADOPTION
Scotland
California Ban sale of new
5 million zero- ICE vehicles by
France
California emission 2032
Ban sale of new
1 million zero- Netherlands vehicles target
ICE vehicles
emission vehicles on 50% of all new car
the road by 2020 sales are EVs
Iceland
Replace oil with
electricity in all
new vehicles
Paris UK
Ban ICE (petrol Ban sale of new
& diesel) vehicles ICE vehicles
2020 2025 2030 2035 2040
Japan
Next-gen vehicles to
account for 50–70%
of new vehicle sales
Germany Norway India China
1 million EVs Sells EVs only All electric Target of 60% electric
on the road manufacturing by 30 sales by 2035
23MACRO-ECONOMIC TAILWINDS
THE GROWING EV & RIDE SHARE MARKET
Ride-Share Market Penetration1 EV Market Growth & Share of Vehicle Sales1
70M 60%
800M
684M 60M 50%
700M 648M
EV Vehicle Sales
605M
Millions of Users
50M
EV % of Sales
600M 553M 40%
493M
500M 426M 40M
30%
400M 354M
30M
300M 20%
20M
200M
10M 10%
100M
0M 0M 0%
2016 2017 2018 2019 2020 2021 2022
US Europe China ROW EV % of Sales
24
1. Electric Vehicle Outlook 2019, Bloomberg NEFEXPERIENCED LEADERSHIP
MANAGEMENT TEAM
Kevin Pavlov Henry Reisner
Chief Executive Officer Co-Founder, Executive Vice President
• +25 years of automotive experience • President of Intermeccanica since
working with OEMs and Tier 1 suppliers • 2001, a subsidiary of EMV.
• Previously was COO of Karma • Extensive experience in the automotive
Automotive industry with a background in
• Oversees the design & production of manufacturing.
ElectraMeccanica’s electric cars.
• Also served as M&A consultant at
Ricardo US and CEO of Eco-Fueling Inc.
Isaac Moss
Bal Bhullar Chief Administrative Officer
Chief Financial Officer & Director
• 27 years of international business,
• +25 years of diversified business, financial investment banking & corporate finance
& risk management experience as an
• Held senior executive positions with
Executive &/or Board Member, with both companies across several industries
public & private companies (industries such including CEO, COO & CFO
as technology, automotive, manufacturing,
resource, marine, energy, transport,
health/wellness.)
• Carries designations as CPA, CGA & CRM
25EXPERIENCED LEADERSHIP
BOARD OF DIRECTORS
STEVEN SANDERS JOANNE YAN JERRY KROLL
CHAIRMAN DIRECTOR DIRECTOR & CO-FOUNDER
• 45+ years of experience practicing • 25+ years of experience in advising • 20+ years of experience as an
international corporate law & managing both publicly traded & investor and in leadership serving in
spanning North America, Europe private companies executive management roles at tech
and Asia companies
• Current President of Joyco
• Founding partner of Sanders Ortoli Consulting Services • Licensed race car driver and founder
Vaughn-Flam Rosenstadt LLP of Kleen Speed Technologies,
• Served on the Board of Directors
• BBA from City College of New York, of public and private companies, developing advanced electric race
a Juris Doctorate from Cornell Law including Zongshen Environtech Ltd. cars at the NASA Research Park in
School & member of the American and Tianchen Aviation (Canada) Ltd. California
and New York bar associations
KEVIN PAVLOV
CHIEF EXECUTIVE OFFICER
DAVE SHEMMANS LUISA INGARGIOLA & DIRECTOR
DIRECTOR DIRECTOR
• 20+ of experience in the transportation industry • Diverse experience in capital markets BAL BHULLAR
with direct involvement developing global with public companies as a CFO, Director CHIEF FINANCIAL OFFICER
businesses around innovation and technologies, and Audit Chair for several public & DIRECTOR
focused on electrification and decarbonization companies in the technology,
• Co-founded Wavedriver, an EV powertrain environmental and energy industries
company, which he led through two funding • Currently the CFO of Avalon GloboCare,
rounds from patented concept to production Director and Audit Chair of FTE
HENRY REISNER
• Currently the CEO of Ricardo PLC (LSE: RCDO), Networks CO-FOUNDER
and a non-executive Director for Sutton and East EXECUTIVE VICE PRESIDENT & DIRECTOR
Surrey Water
26ELECTRAMECCANICA VEHICLES CORP
Corporate Headquarters U.S. Assembly Facility
102 East 1ST Avenue 8100 East Ray Road
Vancouver, British Columbia, V5T 1A4 Mesa, AZ 85212
Canada United States
COMPANY CONTACT
Bal Bhullar
Chief Financial Officer & Board Director
ElectraMeccanica Vehicles Corp.
(604) 428-7656 ext.107
Bal@electrameccanica.com
INVESTOR RELATIONS CONTACT
MZ Group
(949) 259-4987
SOLO@mzgroup.us
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