Volcon Trims Costs in Run-Up to Stag Production

The Volcon Stag is set to arrive in dealers next month. In the meantime, the young company is pulling out stops to remain flexible: On September 18, it announced new cost-cutting measures designed to see the firm through to the start of production of its much anticipated electric side-by-side.

Those measures include the 11-month extension of the maturity of Volcon’s convertible notes—essentially a postponement of debt repayment to investors—from February of 2024 to January of 2025, and the elimination of cash bonuses for certain executives in favor of stock awards. On top of this, Volcon’s chief executive officer, its chief operating officer, and its chief financial officer have all agreed to accept a 10 percent salary reduction. Finally, the firm’s board of directors has agreed to accept its future quarterly cash fees in the form of stock awards.

These moves might seem drastic, but they’re not unexpected. Volcon lost $23 million in Q2 of 2023, following $7 million in Q1, and the company has made no secret of its struggles in the run-up to the start of Stag production.

Stag trim levels were recently announced, and the manufacturer says preorders for the vehicle currently amount to some $115 million.

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