You've likely seen Saleen's wild interpretations of the Ford Mustang and F-150 and may have even considered buying one, but how about buying a chunk of the company itself instead? The iconic tuning shop has announced the next phase of its investment program, selling $1 shares in its Regulation A offering with a $500 minimum investment.
Regulation A allows smaller companies to raise capital without undergoing the expensive process of registering with the SEC. It's also part of the reason why Saleen can sell shares to everyday people instead of focusing solely on accredited investors. Still, if you're hoping to get a piece of the action, tread carefully because there's absolutely no way to tell if buying shares will be profitable. The fine print of the investor website even notes, "Saleen Automotive, Inc. is operating at a loss, and if it does not obtain adequate capital funding or improve financial performance, it may not be able to continue as a going concern." That said, the company expects a solid year.
Saleen took a beating during the pandemic and suffered from hiccups in the global supply chain. The company says a shortage of microchips created a subsequent lack of new vehicle inventory, which is bad news for everyday car buyers and bad news for a company like Saleen that relies on a steady supply of vehicles to customize. The company says the main problem was getting its hands on Mustangs and F-150s, but it also notes that the situation is looking up. Ford expects an increase in wholesale volume in 2022, and Saleen says demand has remained high throughout the ups and downs of the last couple of years. Single-month delivery volume recovered in January 2022 to half the volume of the entire first quarter of 2021.
Saleen's dealer network has grown from fewer than 30 in 2019 to a projection of 80 in 2022. The increase aligns the firm's dealer count more closely with its strong production capacity, which will help it take advantage of economies of scale to reduce costs. The company currently sells two types of cars: Saleen Signature Vehicles, which are reimagined versions of everyday cars like the Explorer, and Saleen Original Vehicles, which are clean-sheet designs developed in-house like the ultra-exclusive Saleen S7 LM. Saleen believes that expanding its signature vehicle line will help "supercharge" growth going forward.
The company expects to generate additional profitability from its order backlog, as it currently has unused production capacity at its disposal. At the same time, the company's average invoice amounts are increasing, with a growth of 50 percent from 2021 to 2022 for some models. The 2022 Saleen roadmap includes a resumption of advertising and public events in the first quarter and the introduction of the Saleen Bronco Signature in the third quarter. The company will pursue the development of its S1 original car at the same time and says it will debut the S5 electric prototype by the end of the year.