BUSINESS

Xos Acquires ElectraMeccanica, Maker of Electric Three-Wheeled SOLO

April 15, 2024

In March 2024, Xos, Inc. announced it had closed its acquisition of ElectraMeccanica Vehicles, maker of the three-wheeled, all-electric SOLO.
The funky, single-seat SOLO ended production in 2023.
ElectraMeccanica offered a buyback, responding to previously reported defects.

Xos, a leader among electric truck manufacturers, recently acquired ElectraMeccanica Vehicles Corp, the maker of the three-wheeled, all-electric SOLO single-seat car.

The terms of the acquisition were first announced on Jan. 11, 2024, and it went through in March 2024. The announcement from Xos said that the all-stock transaction is expected to add a value of approximately $48 million to Xos’ balance sheet, providing growth capital for the company. Xos not only offers premium electric commercial vehicles but is also a fleet electrification services provider.

“We are confident that this acquisition will further strengthen Xos’ commitment to operational excellence, customer-focused vehicles, and efficient capital deployment,” said Giordano Sordoni, COO and co-founder of Xos.

The Quirky, Three-Wheeled SOLO Had a Rough Ride

In 2015, ElectraMeccanica’s co-founder Jerry Kroll envisioned reviving the former American Myers Motors NmG model, a project to which he had acquired the rights. The idea was to restore this model back into production, leveraging its historical significance and unique design as a foundation. A strategic pivot led to the conception of a new, more sophisticated vehicle that promised to supersede its predecessor in size, technology, and overall capability. By June 2016, the production model SOLO was officially presented.

The SOLO, ElectraMeccanica’s flagship model, embodied the essence of modern urban mobility with its distinctive three-wheeled design. This unique vehicle featured a single pair of doors and a sleek body that gracefully narrowed down toward the rear, akin to a unicycle. The SOLO was engineered with a singular vision: to accommodate just one individual, the driver.

This focus on individual transport allowed for a surprisingly spacious passenger cabin, underpinned by a relatively large wheelbase exceeding 2 meters. Positioned directly behind the driver’s seat was a 285-litre trunk.

The year 2022 saw the introduction of the Cargo variant. This model boasted an expanded transportation compartment designed to cater to those requiring additional cargo capacity for business purposes or more extensive hauling capabilities.

Production of the SOLO began at ElectraMeccanica’s Canadian factory in New Westminster, initially for the domestic market. In 2021, production was moved to China as part of a partnership with the local company Zongshen from Chongqing to meet demand in the United States, where exports began three years after the first units were built. In 2022, production was moved again, this time to newly established plants in Mesa, Arizona.

SOLO Stops Production and Buys Back Product

After five years of small-scale production, the new management team of the Canadian startup ended the production of SOLO. The company offered to buy vehicles back from buyers, responding to previously reported defects that could become difficult to service over time.

ElectraMeccanica notified owners about the buyback. This notice is posted on the Xos Trucks site:

DEAR FAITHFUL OWNERS & FUTURE DRIVERS,

Having worked diligently since initiating a voluntary recall on February 17, 2023 of our SOLO (G3/G2) to investigate a possible loss of propulsion in 2019, 2021-2023 models, ElectraMeccanica today announced we would remedy the issue with a buyback.

You can find general information on this remedy in today’s news release. Customers will be contacted directly with regard to their specific buybacks, as ElectraMeccanica continues to operate in full compliance with NHTSA regulations.

We look forward to working with our customers to ensure this is as smooth a process as possible.

We urge any customers who have questions or notice any issues whatsoever to contact our Customer Service Line at 1-855-524-6693; email at recalls@electrameccanica.com or submit information via the following form: https://recall-form.vercel.app/.

Sincerely,
Susan E. Docherty, ElectraMeccanica CEO