EV startup Taiga clears $1M in revenue

Watercraft, snowmobile output begins

Electric vehicle startup Taiga Motors Corp. reported a net loss of $15.6 million in the third quarter of 2022, deeper than the same quarter a year ago, as the company ramps up production and deliveries of its electric snowmobiles and personal watercraft.

“The third quarter presented supply chain challenges which limited our ability to produce but gave us an opportunity to review and revamp our production plan,” said chief executive Sam Bruneau in a press release.

Bruneau put a positive spin on the news, saying that not only are orders are piling up, but the company has also found new ways to be efficient because of the supply chain issues. Sales cleared $1 million for the first time as well, he said.

Here’s what you need to know about Taiga earnings for the three-month period ending Sept. 30, 2022:

Financials

Taiga’s revenue reached $1.3 million in the third quarter. There were no sales in the same quarter last year because deliveries had not yet started.

Diluted net loss per share amounted to 49 cents per share, compared with 24 cents per share in the same quarter last year. The company increased research and development spending during the quarter to $4.4 million from $1.1 million a year ago.

Administration costs also surged as the company grew, climbing to $5.5 million from $2.7 million in the third quarter of 2021.

Backstory

The company is coming off of an $11-million loss last quarter, with revenues of just $399,525 because deliveries of their electric snowmobiles and personal watercraft had only just begun.

Management observed that, unlike other companies, Taiga was benefiting from inflation, because soaring gasoline costs seemed to be encouraging consumers to switch to electric.

“For 2022, we continue to be focused on our three priorities: ramping up production deliveries globally, building a culture of high-performance innovation, and increasing our brand awareness,” said Bruneau.

Time magazine added Taiga’s Nomad snowmobile and Orca watercraft to its annual list of Best Inventions this month.

“This honour further validates our mission and serves as evidence of the progress we have made toward changing how people connect with the natural world through our industry-leading electric powertrains, technology, and design,” said Bruneau in a press release.

Outlook

Taiga launched the Orca personal watercraft during the quarter, and shipped 40 units. Overall the company had 3,267 pre-orders as of Sept. 30, 2022, up 39 per cent from the end of 2021.

The company said weekly output would ramp up later this quarter and it expects to deliver 2,500 to 3,500 vehicles for 2023. It increased its workforce by three per cent to 237 full-time employees.

“We’re now moving towards ramping up our production volume. And for us, to pursue our growth opportunities and various other initiatives, we will require funding,” said Eric Bussières, chief financial officer, during a conference call Monday.

The company took out a $10-million loan with the Economic Development Agency of Canada this month, which will go toward financing equipment and increasing production.

“We’ve seen a pretty steady increase in pre-order activity,” CEO Bruneau said during the call. “We’re recognizing that we have a big backlog of customers patiently waiting for their units, that we want to get to as fast as possible before meaningfully growing our order book.”

Taiga planned to build a facility in Shawinigan, Que., about 166 kilometres northwest of Montréal, but has now delayed construction for a year.