Volcon Posts Mixed Financial News Ahead of Stag Launch

Preorders and newly signed dealers overshadow a large net loss.

Volcon reported strong orders for the Stag electric UTV in the last quarter of 2022, but a net loss of $7.8 million over the same period.Volcon

Although Volcon has yet to deliver a full-scale launch of its promised powersports machines, the company has announced some promising news from the 2022 fiscal year. Highlights include over $116 million worth of preorders for the Stag UTV, and that 151 dealers have already signed on to sell the startup’s electric UTVs, motorcycles, and bicycles. However, not everything is positive in the world of Volcon.

Perhaps the most exciting headline buried in Volcon’s Annual 2022 Operational and Financial Results is that the company received the first three Stag “validation” units, meaning the company is in the later (and hopefully final) stages of the development process. Volcon’s press release doesn’t state when deliveries should begin, but the public company does expect to have the Grunt EVO motorcycle and Runt youth-oriented motorbike in customers’ hands early this year. As of December of 2022, the company’s revenue was about $500,000, but it suffered a $7.8 million net loss over the year’s fourth quarter. That’s not great news, but the net losses are at least decreasing from prior, comparable time periods.

“In the fourth quarter of 2022, we purposely slowed signing of powersports dealers as we expected product shortages as we transitioned the manufacturing of the Grunt to a third party manufacturer and dealt with the shortage of certain parts due to supply chain delays,” Volcon CEO Jordan Davis said. “We expect to have over 250 dealers in the US and Canada signed by the end of 2023. Preorders and interest for the Stag from dealers and consumers continue to be strong. As of the date of our third quarter earnings release we had received preorders exceeding our initial planned production volume for 2023 and we continued to take waitlist orders from interested dealers and end users alike during the fourth quarter of 2022.”

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