UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

March 15, 2023
Date of Report (Date of earliest event reported)

ELECTRAMECCANICA VEHICLES CORP.
(Exact name of registrant as specified in its charter)

(604) 428-7656
Registrant’s telephone number, including area code

Not applicable.
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨

News Release

On March 15, 2023, ElectraMeccanica Vehicles Corp. (the “Company” or “ElectraMeccanica”), a designer and manufacturer of electric vehicles revolutionizing the urban driving experience, today issued a news release (the “News Release”) respecting a letter to its shareholders from Susan E. Docherty, ElectraMeccanica’s CEO and Interim COO, providing an update on the business. This update can found be at ir.emvauto.com or https://ir.emvauto.com/emotion/blog-details/2023/A-Fresh-Start-Part-Two/default.aspx (the “CEO Letter”).

CEO Letter

A Fresh Start, Part Two

Roughly 100 days ago, I wrote to our shareholders and other stakeholders about the need for ElectraMeccanica to take a new path. I noted at the time that this need was obvious, even after less than three weeks inside the business. 

Today, having the benefit of just over three months as a Board member, CEO and interim COO of EMV, I want to provide an update on that perspective as well as the business itself - ahead of our fiscal year 2022 financial results, which we will issue in the near future. 

First, let me identify what remains as true today about EMV as it did 100 days ago:

This means that we have options. I’d like you all to bear this truth in mind as you continue to read this update.

Now, let me summarize what’s new. The items below reflect decisions made with our Board’s support. They also reflect business realities the Board and I have clarified, together, since December: 

We do not believe a three-wheeled autocycle can capture those opportunities, given challenges ranging from its exclusion from government rebates; to the difficulty for consumers of insuring, financing and servicing a three-wheeled vehicle; to consistent customer requests for more functionality. 

Beyond the technical issues associated with the recall notice, these barriers and others to broad consumer acceptance of three-wheeled EVs make it impossible for us to profitably manufacture and sell that version of the SOLO. Instead, we believe we can address the large market for a different kind of EV and become profitable if we keep the best features of the SOLO, including terrific styling, easy charging, great handling and small size, while adding a wheel and other customer-requested features.

We think we have an opportunity to translate our legacy of disruptive, convention-bucking thinking into a superb four-wheeled EV. Put another way, I believe our ability to think outside the box need not be limited to three wheels.

While solving the technical issues with the SOLO remains our top priority in the very near term, our medium-term focus is getting back to market as fast as possible with a distinctive, safe and technically-sound vehicle. This product also must - proven by testing - align with customer needs, and capture the still-valid horizontal market opportunity for smaller, more personalized EVs.

I realize a number of these updates may surprise and even disappoint shareholders as well as other stakeholders. That should not be the case. The SOLO, and ElectraMeccanica as a company, historically leaned into an identity as a fun, everyday, non-Big-Auto business that would disrupt a world filled with too-large, too-expensive and too-carbon-dependent cars. This remains an exciting proposition. It allowed prior management teams to bring to market a highly-distinctive product and construct a world-class facility. 

EMV's ability to innovate and create unique designs has remained unchanged.

What MUST change, however, is the reality that - up to now - this mindset did not translate into a sustainable business, with a viable path to profitability. After 100 days, I am convinced that the fun, accessible, design-forward EMV philosophy has a future. It’s what makes us great. And no employee nor stakeholder needs to let go of that.

We do need to let go of the approach to business execution that formerly went along with that identity. So, just as with Project E4, we need to keep what’s best - our unique design philosophy - while discarding the lack of economic, operating and financial discipline that, frankly, has held us back.

I realize that an enormous amount of energy, money and time was invested in expectations that three-wheeled models of the SOLO could jump-start and support a scaled EV business.

Defining and capturing a market around a three-wheeled vehicle that doesn’t easily fit into financial, legal, and regulatory infrastructure may be possible for someone - but not us. We don’t have the capital to build both a new kind of vehicle and create every single aspect of required sales and support at our prior, declared MSRP.

We DO have the capital, expertise and will to take what made the SOLO great and eliminate customer pain points, while also making it easier to own and operate. 

That’s our high-level plan. Within a few weeks, shareholders and other stakeholders will have the opportunity to consider the decisions above within the context of our fiscal year 2022 results. 

My first 100 days have clarified both for me and the Board the need to reinvent the company in order to do a far more informed, disciplined job deploying the capital and assets we have. 

Change is hard. Unexpected change is even more difficult. That said, as a Board member, CEO and Interim COO, I’m not here to take the easy path. I joined ElectraMeccanica to build a real business and sell vehicles that large populations of people actually want, in a way that will actually make money. The company I joined was not set up for that kind of success. The actions I’ve taken in the first 100 days represent major and necessary steps towards a new and better direction.

A copy of the News Release is attached as Exhibit 99.1 hereto, and a copy of the CEO Letter is attached as Exhibit 99.2 hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.