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Volcon CEO Jordan Davis on the EV powersports-maker's IPO, and future prospects.
SEANA SMITH: A powersport company, Volcon, making its public debut today. And take a look at this chart. Shares are surging in its first day of trading, up just over 110%. The company listing on the NASDAQ today. So we want to bring in Volcon CEO Jordan Davis. We're also joined by Yahoo Finance's reporter Pras Subramanian. Jordan, that move in the stock today, 110% gain that we're seeing, clearly, congratulations on what is an exciting day for you. But what do you make of the enthusiasm that we're seeing from the street today?
JORDAN DAVIS: Well, thank you for having me. Yes, we're very excited about this. I think the enthusiasm comes from just a general enthusiasm for EV. There's a big appetite for the various EV competitors out there. I think the fact that we are 100% off-road EV powersport company and the only one listed on the NASDAQ just adds a little bit of excitement as well.
PRAS SUBRAMANIAN: Hey, Jordan, Pras here. Congrats again on today's debut. So how big do you think the market is for electric powersports vehicles? And what kind of pre-order interest are you guys seeing so far?
JORDAN DAVIS: So I think the market is healthy. I couldn't comment on the total volume. We see we see early demand as being very strong. We've been pre-selling vehicles now for quite a few months, and we have pre-orders of roughly 270 fully paid pre-orders. We continue to get a lot of feedback from both the marketplace and potential dealers about the excitement for the space and commentary around things like from the dealer base, we know that this is going to be a big chunk of the market.
I think that there used to be a conception that or a perception, excuse me, that the EV technologies were emerging, but I think we're at a point now where EV technology is an accepted technology, especially in the vehicle space. So we think there's a very big appetite from the consumer for vehicles, both two-wheel and four.
ADAM SHAPIRO: A lot of us love anything with wheels, and I have to ask you, I'm looking at the website right now. The 2022 Vulcan Grunt. When we look at a vehicle like this, I would imagine that you're saving in the production of it, because you don't have all the gears and all the components that an internal combustion type vehicle has. But the price, at least online of $7,995, I mean $7,900 bucks, does that put you, does that put you out of the market for a lot of us who would love something like this?
JORDAN DAVIS: You know, we don't think so. When we look at the competitive landscape and there are other motorcycles, EV motorcycles out there, we actually under index at our MSRP. So we think we're very competitive. Some of the other features that we offer on the bike are things that you're not going to get in a substitute product like a combustion engine bike. So we will be releasing a app, for instance, that is linked to the motorcycle that gives you on the fly tuning capabilities, navigation. It serves as your interactive dashboard. And we have a roadmap for that product that's going to offer other cool features for the user at the end of the day.
So when you go back to your comment about the complexity of build or the non complexity of the build, yes, there's far fewer parts. Our bike has between 150 and 170 parts compared to the possible thousands that go into an internal combustion bike. But I think when you look at the fact that a customer doesn't have to change oil, change a spark plug, do any kind of technical work to the bike, that adds to the convenience and that adds to what customers are willing to pay to have something that's both easy to ride and low maintenance. And over the course of ownership, a pretty low cost of ownership.
PRAS SUBRAMANIAN: Hey, Jordan, so you guys are based in Austin, Texas building the bikes there. Are you guys committed to US-based manufacturing and so far, have you guys had any problems with component shortages and things like that?
JORDAN DAVIS: Yeah, so we are proud to be Texas, in Texas, and we're proud to be built in the USA. One of the things that we are focused on is to continue production in Texas and try to source as many components domestically as possible. Our bikes do have components from global supply chain, but as far as the continuity goes, we've been able to manage that very well.
Now we are facing the same supply chain shortages as the big three auto manufacturers. Our own competitors in the powersports marketplace, there's no hiding from that right now. But we've got a really seasoned team, an experienced team, and they've been able to navigate that well and keep us in parts.
SEANA SMITH: Jordan, going off of that, I mean, have you had to change your strategy at all? I would imagine that maybe some things have been delayed as a result of the supply chain issues, that you're not alone on it, but that the industry is facing at large.
JORDAN DAVIS: So I think our strategy has remained the same from day one, which is to be a market leader in the space. Definitely the EV powersports leader eventually. As far as our distribution strategy goes, we have made some evolutions over the last few months, mostly so that we're able to scale in the future and keep up with demand, while being profitable and delivering the product. So early on, we were focused on 100% direct to consumer model, and we continue to operate that way. We've actually been making deliveries now for about three weeks to consumers. We kicked that off on September 10. We've also made some initial deliveries to retail.
But going forward, we see a lot of value in partnering with the powersports dealership community and network, especially in the United States. It's well established, it's got a good track record of servicing customers and being able to provide an environment where they can test and see product. And then have some place to go back to you if they need accessories or service or any number of touch points. So as far as our corporate strategy goes, we really haven't pivoted there. But as far as distribution, yeah, we've taken a step back and looked at what makes more sense going forward.
SEANA SMITH: All right, Jordan Davis, congratulations again. A big day for your company. CEO of Volcon, and of course, our thanks to Pras Subramanian as well.