Shares of Volcon (NASDAQ:VLCN) plummeted 10% on Monday after the electric vehicle maker said it was implementing cost reduction measures as it nears the launch of its Stag electric vehicle, expected to begin deliveries in October 2023.
The Austin, Texas-based company has crashed nearly 56% YTD.
Electric vehicle startups are struggling with high cash burn as they face challenges with production and demand.
The company said it will eliminate cash bonuses payable to its officer in favor of stock awards. Future quarterly board cash fees will also be paid in stock awards.
Volcon added that its chief executive, finance chief, and chief operating officer had voluntarily agreed to reduce their salaries by 10%.
According to Volcon, it has entered into a note amendment with its convertible noteholders pursuant to which the lenders agreed to, among other changes, extend the maturity of the outstanding convertible notes from February 24, 2024, to January 31, 2025.
“We continue to build upon our previously announced cost reduction measures, such as closing manufacturing operations in favor of outsourced production and reducing headcount in various areas of the Company to support our vehicle development strategy,” said CEO Jordan Davis in a statement.
