Electric vehicle designer and manufacturer ElectraMeccanica (NASDAQ:SOLO) has a long name but a perfect ticker symbol. That’s because SOLO stock sums up both the company’s one-seater cars and its unique character.
It also describes the lonely journey of the individualist who invests in such an unusual company — there are much more popular electric vehicle companies you could park your money with.
But not everyone likes to follow crowds. Plus, some of the other electric car stocks appear to be overvalued. That’s not the case with this stock, the price of which was cut in half recently.
The cars made by ElectraMeccanica aren’t for everyone, and neither is SOLO stock. That being said, after learning the facts, you might be willing to give this one a test drive.
SOLO Stock at a Glance
ElectraMeccanica is known for making outsized moves, both to the upside and to the downside. Since the stock is high-beta and low-priced — as of today, 1.73 and just below $3, respectively — it’s important to maintain only a small position in shares, if you choose to own it at all.
Additionally, prospective SOLO investors should know that its trailing 12-month earnings per share is -38 cents. Having a negative number for the EPS isn’t encouraging. But it’s also not uncommon for many electric vehicle start-ups.
It’s important that you’re made aware of the good, the bad and the ugly when it comes to SOLO stock. The share price topped out at $6 in July, only to fall back to the $2.50 area — where the stock has remained for a number of weeks.
But that sideways price action also suggests the stock may have just stabilized, which could be a good sign. If $2.50 is the bottom, then there’s the potential for SOLO to double — and then some, if the bulls work hard to reclaim $6.
Living in a Solo World
You’ve probably seen other EV manufacturers with sleek, modern-looking cars. Or, perhaps you’ve been tempted by the handful of automakers that now offer electric trucks.
Those companies are all fine and good. However, if you’re not interested in jumping into an already crowded trade, then it’s worthwhile to check out the ElectraMeccanica home page. At first glance, you might be surprised by the design of the company’s three-wheeled cars. But there is good reason behind the odd look:
“Every day, 119 million North Americans commute using personal vehicles— and 105 million of them commute alone.”
This compelling fact on the site encapsulates the very real potential these vehicles have to become popular — especially in a time when people are keeping their distance from one another.
We can’t deny the impact of the novel coronavirus on the way we live, work, and even drive. Nowadays, these are things we do predominantly alone, and this is something SOLO seems to have anticipated. The conditions of the pandemic could result in a real resurgence for SOLO stock.
Don’t Forget the Workers
So, it’s easy to see that ElectraMeccanica recognizes today’s drivers may be ready for a car tailor-made for social distancing. With this in mind, the company has designed its vehicles with consumers at the forefront. For instance, the new SOLO EV has a suggested retail price (MSRP) of $18,500.
But don’t get the impression that ElectraMeccanica is only gearing its three-wheeled, one-seater cars towards individuals.
The company also recently commenced production of SOLO vehicles that are “purpose-built for utility and fleet applications, including food delivery, small parcel and post distribution, technician transportation for service calls and security.”
The SOLO utility and fleet vehicles feature a range of 100 miles. Moreover, they have a top speed of 80 miles per hour, so they will be realistically safe for highways.
With these new vehicle releases, ElectraMeccanica is acknowledging businesses and workers as a lucrative market for electric cars. It’s a savvy move and could be the next catalyst for SOLO stock to regain $6.
The Takeaway
If you’d rather just follow the crowds then you might not choose to own SOLO stock. It takes an individualistic spirit to buy into ElectraMeccanica, but it’s possible this stock could double. And in a world where solo activities are the norm, SOLO cars have the potential to become quite popular.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
