Volcon Stag Manufacturing Update December 2023
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Insights
Volcon Inc.'s update on the development of the Stag model is a crucial piece of information for investors and market analysts. The specificity of supply chain issues being limited to two components, both requiring software and hardware updates, suggests a contained and addressable problem. The announcement that the rest of the componentry is either on-site or in route for production indicates readiness for manufacturing, which is a positive signal for production timelines and cost management.
Furthermore, the commitment to fulfilling a contract with the U.S. Army Corps first implies a strong entry into the market with a reputable client, potentially leading to increased confidence among other buyers and investors. However, the focus on a single client at the initial stage could also be seen as a concentration risk. The anticipated shipment timeline in the first quarter of 2024 provides a clear expectation for revenue generation, which is essential for financial forecasting and valuation purposes.
The electric powersports industry is rapidly evolving and Volcon's progress with the Stag model is a significant event. By addressing the software and hardware issues promptly and moving towards the testing phase, Volcon is demonstrating its commitment to product quality and reliability. This could enhance their brand reputation and set a precedent for future product rollouts.
Volcon's decision to prioritize the U.S. Army Corps as the initial recipient of the Stag model could establish the product's reliability and performance in demanding conditions. This could serve as a powerful marketing tool when approaching the broader consumer market. However, it is essential to monitor the public's reception of the Stag model post-military use to gauge potential commercial success.
The disclosure that Volcon Inc. has isolated its supply chain issues to two specific components is indicative of a mature approach to supply chain management. By publicly addressing and updating stakeholders on these challenges, the company is fostering transparency. The readiness of the manufacturer’s facility and the status of the components suggest that the company has a handle on its logistics and production planning.
However, the dependency on the successful update and integration of the Electric Powertrain Module (EPM) and Auxiliary Power Module (APM) is critical. Any further delays or complications could have a ripple effect on the production schedule and ultimately on financial performance. Stakeholders should be aware of the inherent risks associated with the testing and validation phase of these new technologies.
AUSTIN, Texas, Dec. 22, 2023 (GLOBE NEWSWIRE) -- Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company, today provided an important update and clarification regarding the development of its eagerly anticipated Stag model.
While we previously announced challenges related to supply chain issues, we wish to clarify that these challenges are specifically limited to two components. The focus of our attention is on two modules that require minor software and hardware updates. Following completion of the applicable updates, we will enter into a short term testing phase to ensure proper operation. Our team is diligently updating and verifying the software associated with these components to ensure they meet our uncompromising standards for quality and performance.
We are pleased to report that the remaining componentry of the Stag is in order, with componentry either on site or in route for production. Our manufacturer’s facility is primed and ready to commence the manufacturing of the vehicles for commerce as soon as the EPM and APM are functioning optimally.
In line with our commitment to excellence and national service, the initial shipments of the Stag will be dedicated to fulfilling our orders with the U.S. Army Corps. We believe this underscores our product's robustness and suitability for demanding applications. Following the fulfillment of this contract, we will begin distribution to the broader public.
We are confident in our timeline and anticipate initiating shipments in the first quarter of 2024. This schedule is informed by the estimated timeline for testing and validation of the EPM and APM, and reflects our commitment to deliver a product that not only meets but exceeds expectations in the evolving landscape of electric powersports.
Volcon remains steadfast in its mission to revolutionize electric off road mobility, and we appreciate the patience and support of our customers and stakeholders as we approach this exciting milestone.
About Volcon, Inc
Based in the Austin, Texas area, Volcon was founded as the first all-electric power sports company producing high-quality and sustainable electric vehicles for the outdoor community. Volcon electric vehicles are the future of off-roading, not only because of their environmental benefits but also because of their near-silent operation, which allows for a more immersive outdoor experience.
Volcon's vehicle roadmap includes both motorcycles and UTVs. Its first product, the innovative Grunt, began shipping to customers in late 2021 and combines a fat-tired physique with high-torque electric power and a near-silent drive train. The Volcon Grunt EVO, an evolution of the original Grunt with a belt drive, an improved suspension, and seat, began shipping to customers in October 2023. Volcon will also offer the Runt LT, a fun-sized version of the groundbreaking Grunt, better suited for small-statured riders, more compact properties and trails, or as a pit bike at race events, while still delivering robust off-road capabilities. The Brat is Volcon’s first foray into the wildly popular eBike market for both on-road and off-road riding and is currently being delivered to dealers across North America. Volcon is also currently delivering the Volcon Youth Line of dirt bikes for younger riders between the ages of 4 to 11. Volcon debuted the Stag in July 2022 and entered the rapidly expanding UTV market and previously announced that it expects to begin shipping the Stag to customers in the fourth quarter of 2023, which has been delayed as noted above. The Stag empowers the driver to explore the outdoors in a new and unique way that gas-powered UTVs cannot. The Stag offers the same thrilling performance of a standard UTV without the noise (or pollution), allowing the driver to explore the outdoors with all their senses.
Volcon Contacts:
For Media: media@volcon.com
For Dealers: sales@volcon.com
For Investors: investors@volcon.com
Volcon Products:Volcon Stag: https://www.volcon.com/stag
Volcon Brat: https://www.volcon.com/brat
Volcon Grunt: https://www.volcon.com/grunt-evo
Volcon Runt: https://www.volcon.com/runt-lt
Volcon Youth Line: https://www.volcon.com/youth
Forward-Looking Statements
Some of the statements in this release are forward-looking statements, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, when the Company can complete the testing of the EPM and APM to begin production of the Stag, and whether production of the Runt LT will occur. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC’s website, www.sec.gov.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fcccda5f-a21d-4f6d-8c57-4b5db5a2f394
FAQ
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