Canadian EV hope Taiga loses $11 million in second quarter: What you need to know

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Electric vehicle upstart Taiga Motors Corp. reported a net loss of $11 million in the second quarter of 2022, worse than the year-ago quarter. Still, the company only began selling its products — the world’s first electric snowmobiles and personal watercraft — this year. 

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“I would like to take a moment to highlight the magnitude of this achievement,” chief executive Samuel Bruneau said on a conference call Monday. “We put (in) over six years of work to get where we are today. We had to develop novel solutions to electrify two of the toughest vehicles in the segment.” 

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

Backstory

The company says that, unlike other companies, it’s benefiting from inflation, because soaring gasoline costs seemed to be encouraging consumers to go electric.

“We are seeing that the increased fuel prices are actually leading to more demand from the buyer side,” Bruneau said in an interview last month. “Rental fleets and resorts and ski hills – this is encouraging them to switch to electric.”

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Still, the company will need to contend with the price differential between electric vehicles and their gas-powered counterparts. The company delivered 21 Nomad snowmobiles in the second quarter despite ongoing supply chain issues.

“2022 production remains limited by various factors, including supply chain pressures, availability of raw materials and other components,” said CFO Eric Bussieres on the call. “The production ramp-up is expected to increase as critical components become available.”

Bruneau said that the company was working to “de-risk” their supply chain.

During the quarter, the company was named Overall North American winner in Fast Company’s 2022 World-Changing Ideas award. “This award further validates our mission, and serves as evidence of the progress we have made toward changing how people connect with the natural world,” said Bruneau. 

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Financials

Revenue reached $399,525 in the second quarter. (There were no revenues in the year-ago quarter.) The pre-order book stands at 3,054 orders received.

Diluted net earnings per share were $0.35, compared with $2.99 per share in the same quarter last year. 

Shares were trading down less than a per cent at $5.15 at 9:31 a.m. Toronto time. 

Outlook

“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.

This quarter, the company launched the Gear Shop, an online store with seasonal apparel. 

“We’re now on the verge of ramping up our production volume. And for us, to pursue our growth opportunities and various initiatives, we will require funding,” said Bussieres. 

The company expects to deliver 2,500 to 3,500 units in 2023.

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