California-based electric tractor manufacturer Solectrac recently announced plans to prioritize "direct-to-consumer sales and partner with select dealers in key markets." The company said it was refocusing efforts previously directed towards expanding its dealer network.
"This move ... aims to leverage government EV subsidy programs and cooperative purchasing agreements that incentivize electrification as part of the larger DTC strategy," the company said.
This follows reports last November of Solectrac being divested by its parent company Ideanomics and searching for a new investor. Ideanomics reported total revenue for Solectrac in 2022 was almost $11 million, up from $1.8 million in 2021. However, net loss for 2022 was $15.2 million, also up from a net loss of $1.9 million in 2021.
In November 2023, then Solectrac Vice President of Sales and Marketing John Grooms reported the company had over 100 stores in its dealer network and was looking to add more.
A former Solectrac dealer said they'd been a dealer for several years but never sold any of its units. "I spoke to a few Solectrac dealers before we took on the brand," the dealer said. "The ones that I'd spoken to had not sold any units either. When things started going a little sideways, we started reaching the calendar date where we were going to have to make a decision: do we cut bait or continue with Solectrac? There were other dealers who were considering the cut bait approach, just because they didn't have the sales either. We saw this [direct-to-consumer approach] coming."
“The high price point of the tractors, coupled with an initial lack of marketing programs, was part of the problem,” the dealer said. "When the product first came out, they were very expensive, there were not many marketing programs, and they were trying to sell on the green initiative. When units weren't selling, they started throwing a lot of marketing programs at the units. I think by that time, the green initiative bubble had popped.
EDITOR’S TAKE:
Some of you might recall the articles we provided in this newsletter a couple years ago, as well as a major segment during AgRally 2022, on the Electrification of Ag. There were many questions then, as well as curiosity, about how EV’s would be accepted on farms/ranches across the U.S. We even did an article about Soletrac. It appeared at the time the product could have a future in the California orchard and specialty crop arena. Apparently, that is not the case according to the dealer account in this article. Much like the EV units on your lot, EV tractors aren’t exactly flying off the lot either. Selling the “Green New Deal” appears to be facing some major headwinds. Attempting to dictate consumer preferences simply does not work and here is some pretty good evidence of that. In the meantime, you can continue to promote conventional or EV trucks to farmers/ranchers on AgTruckTrader.com®. And whether they purchase a gas or diesel or an EV, it will still qualify for AgPack®, worth up to $35,000 in exclusive rebates and discounts.
