After six years of research, development and testing, Taiga Motors has reached an important milestone in its young history by generating its first revenue. The electric recreational vehicle manufacturer is accelerating its pace on the personal water side, although it can be difficult to supply.
Posted at 10:35 am
Updated at 1:01 p.m.
“We have passed the most difficult stage,” he welcomed the young president and general director of photography for Quebec, Samuel Bruno, on Monday, in a telephone interview with JournalismAfter displaying the results of the first quarter. “It is years of development, thousands of parts and the efforts of hundreds of employees. »
Co-founded by Bruneau, Paul Achard and Gabriel Bernatchez, the still unprofitable Taiga delivered seven Nomad snowmobiles at the end of the first quarter, which ended March 31. A total of 28 units have been delivered to customers in Canada – including the Association of Foreign Enterprises of Quebec (SEPAQ) – and in the US as of May 13.
Investors seem to appreciate the progress the Montreal-based company has made in Lachaine. On Monday afternoon on the Toronto Stock Exchange, Taiga stock rose 6.35%, or 27 cents, to trade at $4.53. This is still far from the $13.25 level when the company entered Bay Street in April 2021.
After the snowmobiles, Taiga organizes its production line so that its first personal watercraft leaves its factory in time for the summer season.
But like most companies, the recreational vehicle manufacturer is not immune to supply difficulties. Its production ambitions could be curbed a bit even if the company says it has found enough electronic components to assemble 1,000 units.
“There are microprocessors, delivery times, availability of plastics and some metals,” Bruno explains. We have made great efforts. We do not give a specific timetable. [pour les livraisons de motomarines] Currently. We want to deliver it in time so that people can use it this summer. »
The Taiga chief says his company has been able to “strategically” stockpile components to mitigate the impact of delivery delays. Cameron Dueriksen of National Bank of Finance, one of the analysts who track Taiga’s activities, expects slight disruptions to production.
“Although the supply chain is challenging, we expect a steady increase in production over the next few quarters,” he wrote in a note. Taiga’s facilities in Montreal can manufacture 8,000 units annually. »
Always in red
While Taiga generated $141K in revenue for the first three months of the year, it expanded its net loss from $6.3 million to $9 million. This result is mainly due to the resources deployed to speed up production. Thirty people were added to the workforce of 216 employees.
The company had 2,886 pre-orders at the end of March, up 22% from December 31 last year. However it can be canceled and fully refundable.
To grow, the manufacturer of electric snowmobiles and personal watercraft must draw on its reserves, in particular to complete the construction of its production plant in Shawinigan, a 125 million project for which Ottawa and Quebec can lend up to 40 million. There were 71 million in the company’s coffers as of March 31, compared to 86.7 million on December 31.
“It is likely that Taiga will need additional capital to fund this expansion, but we believe other financing options are available to the company,” Dworkin wrote.
Asked about this possibility, the company’s chief financial officer, Eric Bossier, said that “any ‘financial manager’ does not close the door to forms of financing,” before noting that there is nothing to add at the moment.
- When the Shawinigan plant opens, the Taiga could produce up to 70,000 recreational vehicles a year, according to analyst Cameron Dueriksen of National Bank of Finance.
Source: National Bank