Today, one of the electric vehicle (EV) stocks in focus for investors today is ElectraMeccanica (NASDAQ:SOLO). Despite opening around yesterday’s close, shares of SOLO stock are currently more than 4% lower at the time of writing.
This move is perhaps unsurprising on some levels. Various speculative EV stocks have seen selling pressure across the board today. Accordingly, perhaps it’s not necessarily a good day to be looking at EV stocks.
Among the key factors playing into the concern investors are showing today are risks of rising rates. Bond yields have come up meaningfully over the past month. Currently, the 10-year U.S. Treasury yield continues to sit above 1.5%. Additionally, risks related to tapering happening sooner than expected, as well as the potential for interest rate hikes, have growth investors on watch.
Furthermore, chip shortages and other supply-chain-related concerns are eating away at EV valuations.
That said, there are reasons why some investors may want to be bullish on SOLO stock. Let’s dive into why Oct. 4 is a big day for ElectraMeccanica investors.
SOLO Stock Lower, Despite Customer Deliveries Beginning
Earlier last month, it was announced that customer deliveries of the SOLO EV would begin Oct. 4. This announcement was met with enthusiasm, and shares began to take off. However, in recent days, investors appear to have taken on an increasingly risk-off approach to growth stocks.
Accordingly, SOLO stock has underperformed in recent weeks. Over the past week alone, shares of SOLO stock are down more than 13% at the time of writing. That’s a significant decline.
Today’s special launch event may not have inspired the kind of buying pressure investors had hoped for. However, this news is important for investors banking on growth in the three-wheeled EV segment. ElectraMeccanica provides a very unique product in a niche that’s underserved. Investors looking for EV options out of the mainstream, with impressive growth potential, have reason to consider this stock.
Will SOLO stock recover following the events of recent weeks? Will this quarter bring the revenue growth investors are looking for? Time will tell.
However, for now, SOLO stock looks like an intriguing one to keep on the watch list.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
