Volcon’s 2024 Financial Results Are Here and There

Volcon’s corporate numbers for Q4 2024 show some, to put it kindly, teething. However, that’s to be expected from a company that killed the product it was created to produce and is now pivoting to a new mission. The company’s 10-K filing with the Securities and Exchange Commission (SEC) shows revenue from the full year increasing 19.3% to $4.04 million. Higher sales of the electric Grunt EVO motorcycle and Brat ebike plumped up revenue.

Because the cost of making that money rose 62.7%, from $11.4 million to $18.2 million, Volcon’s gross margin ballooned further into the negative at $14.1 million. The final figure’s misleading though. The company attributed the negative margin almost entirely to costs of axing the Stag electric UTV. There was a $2.5 million charge for eliminating Stag and EVO supply agreements, a heftier write-down of $8.7 million for prepaid Stag deposits and Stag inventory, and another seven-figure charge to a component supplier for Stag tooling. Get rid of the various one-time charges, and Volcon says “the Company’s gross margin is trending close to break even.”

Heavy focus on trimming operating expenses cut the full-year total from $29.8 million to $27.0 million, a 9% decline. These operating costs got major help from the switch to selling golf carts; since Volcon doesn’t make its own products anymore, the 2024 product development budget shrank from $7.9 million in 2023 to $2.7 million in 2027. The reorganization of spend has reined in the overall net loss for 2024 to $45.5 million, only 10% worse than the full-year figure for 2023.

The two most interesting notes are that the HF1 electric UTV is reaching dealers, and that engineers at the Texas mothership have received the first prototypes of a coming electric motorcycle. The HF1 is on sale now at places like Lithium Powersports in Jacksonville, Florida, for $29,999 before options. The MN1 electric golf cart, sourced from supplier Super Sonic, is on sale for $9999. The motorcycle, called the FT1, is expected to go on sale by Q3 of this year after testing and regulatory compliance duties are complete.

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