First it’s hot, then it’s not. Canadian electric vehicle (EV) start-up ElectraMeccanica Vehicles (NASDAQ:SOLO) was all the rage in late 2020, but lately, SOLO stock has been stuck in neutral.

Unfortunately, some folks who jumped on the bandwagon during the EV hype phase were disappointed. Now, ElectraMeccanica’s stakeholders have to reassess their positions and decide whether to stay in the trade.

Admittedly, we’re not seeing single-seat EVs on every roadway in every town. Holding SOLO stock means that you’ll have to believe in ElectraMeccanica’s vision of little three-wheeled cars proliferating.

Thankfully, there are positive developments — including some long-awaited initial vehicle deliveries — to suggest that the public might, indeed, be ready for right-sized vehicles.

A Closer Look at SOLO Stock

It’s hard to let go of the past sometimes. We can look back with nostalgia at 2020’s fourth quarter, a time when SOLO stock sped like a race car from $2.50 to $13.60.

Personally, I tend to shy away from stocks that went up 400% in a few weeks. Oftentimes, chasing after parabolic moves can be bad for your fiscal health.

Some traders learned this lesson the hard way as SOLO stock sank in 2021. Innumerable portfolios were drained of value this summer, sadly, as the stock declined to $3 and change.

After the bloodletting came the boredom phase. Since July, the ElectraMeccanica share price has been stuck in the $3 range — no better, no worse.

At the same time, ElectraMeccanica has trailing 12-month earnings per share of negative 70 cents.

That negative number can be turned into a positive one, though, if the company can get its diminutive cars on the roadways.

So can we count on ElectraMeccanica Vehicles to “deliver,” so to speak?

A Transformational Milestone

In a major moment for the single-occupant EV movement, ElectraMeccanica finally commenced the first customer deliveries of its flagship SOLO car.

This event took place at an invite-only unveiling event held in Los Angeles on Oct. 4.

The press release emphasized that at least some of those initial deliveries were made to sustainability-friendly businesses, like Faction Technology, Cyber Yogurt and Ruby’s Diner.

George Alexander of Ruby’s Mission Viejo, for example, plans to use the SOLO EV as a “moving billboard” for his business, as well as to help with deliveries.

This makes perfect sense. Businesses that deliver items locally don’t necessarily need cars that allow for multiple passengers.

What they need, rather, is a fuel-efficient car that can fit into small parking spaces when required. And for that purpose, the SOLO EV is a perfect fit.

Commitment to Sustainability

Yet the benefits for businesses go beyond the practical advantages of the SOLO EV.

As Cyber Yogurt owner Pablo Tamashiro explained, his business chose this vehicle model “because it allows us to demonstrate our commitment to sustainability.”

“Even though we are a small business, we want to do our part to make a difference in our community,” Tamashiro added.

Of course, this is just the first chapter of a much bigger story that has yet to unfold.

According to ElectraMeccanica, the automaker remains on track to complete its new, Arizona-based U.S. Assembly and Engineering Technical Center in the summer of 2022.

This manufacturing hub will, if all goes as planned, be able to produce up to 20,000 vehicles per year.

Moreover, it’s just been revealed that mobility solutions and industrial technology firm Bosch will establish a network of automobile repair shops to support the support service and maintenance needs for the SOLO EV.

As a result, drivers of the SOLO EV should have easier access to repair and maintenance shops.

The Bottom Line on SOLO Stock

There’s certainly no guarantee that the public will embrace single-seat EVs.

Perhaps, though, they can learn to appreciate them after they’ve seen more businesses using the SOLO EV.

For the time being, ElectraMeccanica’s stakeholders can at least celebrate the progress that’s being made.

And if the tiny-car revolution gains traction, a small investment could yield jumbo-sized returns.

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On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.