Shares of ElectraMeccanica Vehicles (NASDAQ:SOLO) may be down today, but investors should pay close attention to recent company news. In fact, this news has the potential to boost electric vehicle adoption and boost SOLO stock. So what do you need to know now?
For those unfamiliar, ElectraMeccanica is a company behind rather unique all-electric vehicles. Unlike many of its competitors, it focuses on the three-wheel vehicle market. Its flagship Solo is made for a single occupant, reimagining the commuter experience, especially in crowded city environments. Plus, ElectraMeccanica has two other models in its pipeline. Preorders for the Tofino and eRoadster models, which are two-seater vehicles, are available now.
And broadly, investors like SOLO stock. It is a riskier bet than Tesla (NASDAQ:TSLA), but ElectraMeccanica represents a solution to a specific transportation problem and another route to speed up the electrification of global roads. With that in mind, SOLO stock continues to captivate attention, including through a rally earlier this week.
So what do you need to know about the latest company news?
Today, ElectraMeccanica shared that it was going to expand its direct-to-consumer experience to three more cities in California and Arizona. Currently, it has 10 retail locations that help it better engage customers and educate cities about the Solo EV. Additionally, these locations offer consumers a chance to place their reservations in person. ElectraMeccanica thinks that by expanding its retail footprint, it will continue to boost its visibility, ultimately boosting demand for its three-seater vehicle.
Also in the new announcement is a plan to bring its SOLO Drive Tour marketing and ad campaign to five cities in Arizona, California and Oregon. These events in February and March will include test drive experiences and first-look opportunities.
What Does the News Mean for SOLO Stock?
Broadly, SOLO stock stands to benefit from the growing interest in electric vehicles. But what does the news today really mean for ElectraMeccanica? And how meaningful will it be for SOLO shares? Consider this insight from InvestorPlace analyst Luke Lango:
“This [retail] strategy appears to be working. In late 2020, they opened one such pop-up retail in our local mall in San Diego. Every time we have passed that pop-up location since, it has been very busy. I’m hearing ground-level reports that the same is true for the company’s retail stores in Los Angeles and Phoenix. Further expansion of this successful marketing strategy should increase brand awareness, drum up consumer enthusiasm, increase the test-drive list, and ultimately lead to more Solo car sales in 2021. The 3-wheel EV revolution has arrived.”
For investors then, the new retail locations alone are not a reason to buy SOLO stock. However, for fans of the unique EV maker, this is a good sign that more success is on the way. Take note now.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.