Electra Meccanica Vehicles Corp (NASDAQ: SOLO) is having an incredibly strong day in the market today, and for good reason. Well, for two good reasons.
First and foremost, the company announced the grand opening of a factory. Another story likely hiking up share prices has to do with Elon Musk and is bout with the SEC. Today, we’ll talk about:
- Why SOLO stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why SOLO Stock Is Climbing
As mentioned above, Electra Meccanica Vehicles is having a great day in the market today for multiple reasons. First and foremost, the company announced the grand opening of an SOLO EV production facility.
The facility was opened in Chongqing, China on Friday, February 22, 2019. To celebrate, the company recently held an opening ceremony at the facility. In a statement, Jerry Kroll, CEO at SOLO, had the following to offer:
I am proud of our strategic partners at Zongshen, who have provided us with a state-of-the-art production facility and a highly-skilled production team to make the Electra Meccanica SOLO EV a reality. We remain confident in our ability to deliver the first 5,000 SOLO EVs in 2019 to our earliest supporters, providing them with an unforgettably unique zero-emissions driving experience. I believe we are poised to create notable shareholder value over the long-term and look forward to providing our shareholders with future updates on our production progress as appropriate.
The above statement was followed up by Steven Sanders, Chairman of the Board of Directors at SOLO. Here’s what he had to say:
I am thoroughly impressed with the experience, dedication and professionalism that Zongshen has displayed. Our strategic partners are truly dedicated to building a world-class vehicle alongside the team at Electra Meccanica.
In other news, Tesla is also likely helping to push Electra Meccanica Vehicles stock up. A recent post on Twitter by Elon Musk, misquoting the amount of vehicles to be produce this year by 100,000 has caught the attention of the SEC.
As a result, many investors are hopping ship and jumping to other options. In the EV space, SOLO is an important player. The company’s claim to fame is a $15,500 electric vehicle with a 100 mile range.
While the low price for the technology and interesting look of the car was already likely to draw investor attention, Tesla’s blues are sending more investors eyeballs to stocks like SOLO and NIO.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news moves the market. In the case of Electra Meccanica Vehicles, the news proved to be great.
First and foremost, the company’s new production facility for its mass market electric vehicle has openned, opening the door to stronger production. Moreover, with Tesla blues, investor attention is shifting to the company and others in the space.
So, it’s not surprising to see that the stock is gaining in the market today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:24), SOLO is trading at $4.44 per share after a gain of $0.55 per share or 14.09% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SOLO. In particular, we’re interested in following the growth in production of its flagship vehicle with the opening of the new facility.
We’ll also be following the Tesla story and how it relates to positive investor attention for SOLO and NIO. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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