Electrameccanica Vehicles (SOLO) is a Canadian manufacturer of electric vehicles (EVs). I am bullish on the stock.
Many EV makers consider themselves to be unique, but let’s be honest: Some of them look very similar to their competitor’s vehicles. It almost feels like an “if you’ve seen one of them, you’ve seen them all” type of situation.
Yet, there’s an EV manufacturer with cars that are actually in a class by themselves. If you’re unfamiliar with Electrameccanica Vehicles’ automotive product line, then you might look at them and think that their cars are unfinished.
However, Electrameccanica’s EVs are supposed to look the way they do. They’re so unusual that the skeptics might argue that these vehicles aren’t right for everyone, which is probably true. Still, they’re right for some people and could offer benefits to businesses seeking to deploy zero-emission cars.
All in all, you might decide that SOLO stock is worth an investment, even if you wouldn’t necessarily own one of Electrameccanica’s EVs yourself. Granted, it requires a certain level of confidence to buy and hold SOLO stock. At its current price, however, there’s potential for multi-bagger gains with the stock if Electrameccanica Vehicles continues to post strong financial and operational results.
Ready to Deliver
First, we should get to know Electrameccanica Vehicles as a business. The company’s flagship vehicle, known as the SOLO, only seats a driver and no passengers. Also, the SOLO vehicle only has three wheels. This explains the vehicle’s “unfinished” appearance, which is really just part of the design.
Besides the fact that it produces zero emissions, the SOLO vehicle can achieve a speed of 80 miles per hour and is powered via standard 110-volt outlet charging. Electrameccanica also suggests that you can park the SOLO vehicle anywhere, which is an exaggeration, but the car is certainly easy to park.
Along with the compact body of the vehicle, there’s also the car’s low price to consider. Specifically, the SOLO vehicle has a manufacturer’s suggested retail price (MSRP) of just $18,500. This could make sense for someone who requires efficiency, needs to park in small spaces sometimes, and typically drives alone – such as a delivery driver.
Hence, it makes perfect sense that Electrameccanica Vehicles is proudly showcasing its SOLO Cargo EV, a delivery-ready commercial EV. It appears that the company is targeting restaurant and food-delivery businesses with the SOLO Cargo EV, which features an MSRP of $24,500.
It’s actually an ideal solution for restaurant and food-delivery companies seeking to electrify their fleets. Compared to two-wheeled options (scooters, motorcycles, bikes, etc.), the SOLO Cargo EV is likely to provide better safety, the ability to carry more food items, as well as weather and temperature protection advantages.
Electrameccanica Vehicles CEO Kevin Pavlov is clearly prepared for his company to capture a sizable share of this niche market. “We can’t wait to introduce our SOLO Cargo to the biggest restaurant chains in the nation, who can get outsized operating and marketing value from shrinking carbon footprints and lower transport costs,” Pavlov stated.
Where the Rubber Meets the Road
So far, we’ve discovered the benefits of Electrameccanica’s cars, which are highly unusual but could represent the future of ultra-efficient EVs. These cars are strangle-looking today but could seem normal in a few years’ time.
Skeptical investors, however, will want to see some results now instead of just having faith in the company’s future. After all, selling vehicles and generating revenue is where the rubber really meets the road for any automaker, including Electrameccanica Vehicles.
Not long ago, investors got to look under the hood when Electrameccanica released its first-quarter 2022 financial and operating results. Despite logistical headwinds – which, we can presume, would include global supply-chain constraints – Electrameccanica managed to manufacture 170 SOLO vehicles during the quarter and delivered 45 vehicles.
That’s impressive for such a tiny start-up EV maker, but here comes the best part. During Q1 of 2022, Electrameccanica Vehicles generated $1,038,643 in revenue, easily outpacing the $183,589 generated in the year-earlier quarter.
This is an astounding improvement, yet SOLO stock continues to trade below $2. The stock was valued at more than $10 at one point, so it looks like there’s plenty of room to run. However, maybe you shouldn’t put too much of your account into SOLO stock. It’s volatile, and there’s no guarantee that Electrameccanica Vehicles’ EV offerings will become popular, as they are definitely odd-looking.
Wall Street’s Take
Turning to Wall Street, SOLO stock comes in as a Moderate Buy, based on one Buy rating. The average Electrameccanica Vehicles price target is $7.50, implying 400% upside potential.
The Takeaway
Now, you’ve had a closer look at a lineup of unique EVs that are easy to park, affordable, and could be ideal for food delivery. Over the coming years, it will be interesting to see if Electrameccanica’s little cars gain traction in the EV market.
Only time will tell whether Electrameccanica can continue to grow its revenue as it did in Q1 2022. Still, for cautious folks who are willing to take a small position size, SOLO stock has the potential to deliver strong upside to visionary EV-market investors.
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