Electrameccanica Stock Has Been Stuck, but There’s a Breakout Coming

Want to cash in on the global electric vehicle craze? One way to do this would be to take a position in Canadian electric vehicle start-up Electrameccanica Vehicles (NASDAQ:SOLO). It’s one of the more unusual companies in the space, so SOLO stock isn’t for everyone but certainly is worth a look.

The Solo vehicle from Electra Meccanica Vehicles (SOLO) drives through Vancouver

Source: Luis War / Shutterstock.com

The idea of single-seat electric cars might throw some people off. It’s a concept that will either resonate with you or drive you away.

One of the main sticking points is that not everyone is convinced that single-seat cars will gain mainstream acceptance. That’s a legitimate concern. However, there is evidence that Electrameccanica is making an effort to market its cars to the public.

Another sticking point concerns the recent price action of SOLO stock. Some skeptics might wonder why the stock seems to be stuck in neutral. So, let’s start with a deeper dive into what’s been happening with the SOLO share price.

A Closer Look at SOLO Stock

Here’s what’s interesting about SOLO stock. It doesn’t just follow Tesla (NASDAQ:TSLA) stock around like a puppy dog. SOLO investors have a mind of their own, you could say.

That makes sense since the company and its cars tend to appeal to independent thinkers. As for the SOLO stock price, it has shown a tendency to churn sideways for a while and then spike hard from time to time.

I wouldn’t recommend trying to time these quick moves. That’s not a game that most folks will win. Instead, it’s best to just start accumulating the shares if you believe in the company and its vision.

In any case, from late November to early February, SOLO stock didn’t make much progress. It’s testing the shareholders’ patience, but the bulls seem to be successful in maintaining the $7 level. And, you never know when a quick run to $10 and beyond might happen.

Coming to America

Is “marketing” a dirty word? Some folks might believe so, but start-up companies must be proactive in spreading awareness of what they have to offer and letting people know how they’re different from competitors.

This is particularly the case with Electrameccanica, as the company is on a quest to infiltrate the U.S. electric vehicle market.

To this end, the company is expanding its retail network to three new locations in the West Coast of the U.S. The grand openings are scheduled for March, with two locations in California and one in Arizona.

This is all in addition to Electrameccanica’s presence in other countries. Specifically, the company operates in Vancouver, British Columbia, where Electrameccanica has a research-and-development facility, as well as in Chongqing, China.

Somehow, the American West Coast just feels like the perfect landing point for the company’s U.S. invasion. Maybe it’s because the folks in California seem like they’d be more open-minded about trying clean-fuel cars with a very different look.

Raising Awareness

Nonetheless, the people aren’t going to care about Electrameccanica’s unusual-looking cars if they’re not aware that those cars exist.

So again, we have to broach the unpleasant topic of marketing. Electrameccanica isn’t approaching marketing as a necessary evil, though. If anything, the company taking its American marketing campaign to the next level.

Thus, Electrameccanica is gearing up to commence its ambitious SOLO Drive Tour in February and March. Currently, the tour is planned for five cities in total, located in California, Arizona and Oregon.

Electrameccanica CEO Paul Rivera emphasized that his company will provide “exclusive, invitation-only test drive experiences” to “select early reservation holders” during the SOLO Drive Tour.

Creating an air of exclusivity is an interesting approach. It’s yet another example of how Electrameccanica doesn’t follow other automakers along the beaten path. I imagine that most SOLO investors prefer it that way.

The Bottom Line

Electrameccanica truly is a unique electric vehicle maker. You just never know what the company might do next, and that’s not necessarily a bad thing.

As for SOLO stock, it should get un-stuck in the near future. Just be patient and continue to monitor the company – which, I’m glad to say, is always full of surprises.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/02/solo-stock-stuck-breakout-coming/.

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