ElectraMeccanica, a Canadian electric vehicle company, is still pursuing its merger strategy with other electric businesses, despite the failed deal with Tevva Motors in September 2023.

The company’s CEO and Board Member, Susan Docherty, addressed the shareholders in a letter on Wednesday, December 6, 2023, and updated them on the progress of the merger talks.

Docherty said that the ElectraMeccanica team and Board never slowed down on post-Tevva efforts to identify new promising candidates for their still-valid merger strategy. She said that the company remained laser focused on taking every step possible to protect shareholder value in the short term and create it over the long term.

She also said that there remains a great deal of interest across the larger electrification sector in ElectraMeccanica, as the company has a strong balance sheet and cash position. She said that high interest rates and a conservative commercial lending environment make the company’s cash and balance sheet valuable and attractive to potential merger candidates.

According to Docherty, the company has engaged in methodical talks with over 20 different companies since the second week in October, 2023. These comprise both public and private entities across a diverse range of product sets, such as battery technology, charging infrastructure, electric motorcycles, and electric trucks. She said that the company is evaluating various companies across the broader electrification spectrum, while being mindful of the importance of careful and thorough due diligence.

She also said that the company has recently narrowed the focus of these efforts to just a handful of electric businesses, and is conducting detailed, data- and performance-driven evaluations of these candidates right now, including site visits. She said that others continue to come in, giving the company a backup pool of candidates, should they need it.

Additionally, Docherty said that the company is taking steps to further reduce its cash burn to even lower levels by year-end, and is also actively exploring a wider variety of ways to leverage its state-of-the-art, 235,000-square-foot manufacturing facility in Mesa, AZ, which was opened in June 2023.

Docherty said that she looks forward to providing another update within the next month, and that nothing is higher priority than getting ElectraMeccanica back into a viable position with the right merger partner to maximize revenue and profit as the company advances electrification.

ElectraMeccanica is best known for its flagship product, the SOLO, a single-seat electric vehicle that was launched in 2018. The company also has a joint venture with China-based Zongshen Industrial Group to produce and distribute the SOLO in China. The company’s stock price has declined by 65% since the announcement of the Tevva deal in July 2023, and is currently trading at $1.23 per share.