Volcon (VLCN) CEO issues Annual Update

After one year of John Kim at the helm of Volcon ePowersports, their recent successes can be attributed to his strategic shift. In the last 12 months Mr. Kim was able to switch Volcon from being a mostly R&D organization developing its own electric offroad technologies into a company that is focused on collaborating with manufacturers to brand and sell high-quality electric vehicles. This has positioned Volcon to be a true disruptor in the ePowersports business, which was made especially apparent with their recent AODES (Super Sonic) collaboration.

Volcon’s AODES (Super Sonic) announcement allowed them to raise $19.45 million to fund their foray into the golf cart and utility vehicle market. Bringing high-quality, low-cost electric vehicles from Vietnam into the US market creates a tremendous opportunity for grabbing significant market share. With current Vietnam tariffs at a mere 2.5% (compared to China’s tariffs of up to 500%), it is clear that the relationship with Volcon and AODES (Super Sonic) is deeply valued. Strengthening political ties between the US and Vietnam, to buffer Chinese regional growth, adds to Volcon’s confidence that open trade between the US and Vietnam will continue and flourish.

Mr. Kim noted, “The investment that we received last week will fund our push to grab market share during this disruptive market opportunity. The bulk of the investment will fund much needed golf cart and UTV inventory to fuel consumer demand and also to expand our sales team. At this time, we see a clear path toward growing the total number of vehicles we sell every year as well as a road to profitability.”

Volcon’s changed approach in bringing products to market has significantly reduced headcount and costs. In addition to cost-effective manufacturing practices, the company has lowered marketing costs by outsourcing to and working with specialized marketing firms to grow their marketing share more effectively. Volcon will continue to evaluate their costs and reduce accordingly.

Greg Endo, CFO, notes “With the cost reductions we have made and the anticipated working capital requirements to fund inventory purchases John notes, we expect to be cash flow positive on a monthly basis by the fourth quarter of 2025 and will be able to fund operations into 2026.”

In addition to obtaining market share of golf carts and UTVs in the US, the company is still committed to innovating and selling two-wheel vehicles. For more information on the company’s expansion efforts and the six-month update from August 2024, please refer to the links below. Volcon looks forward to a strong year and is grateful to their shareholders and customers for their continued support.

You May Also Be Interested In