Electrameccanica Vehicles Corp (NASDAQ: SOLO) is having an incredibly strong start to the trading session today, following up on yesterday’s gains in multiples. While the company hasn’t released any news, there’s very good reason for all of the excitement surrounding this stock. Today, we’ll talk about:
- Why investors are falling in love with SOLO stock;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why Investors Are Falling In Love With SOLO
As mentioned above, Electrameccanica Vehicles is climbing early on in the market today, following up on yesterday’s gains. With no news from the company, many are wondering why investors are falling in love here.
The reason is relatively simple. Yesterday morning, Bloomberg issued a report outlining the potential opportunity here. And there is a strong potential opportunity.
The truth of the matter is that the world is working to become more environmentally friendly by reducing greenhouse gasses. So, electric vehicle makers like SOLO are already in a good spot. However, this company has a bit of a competitive advantage.
First and foremost, their hit vehicle, Solo, which has more than $2 billion in pre-orders is an interesting offering. The three wheeled, one seater vehicle was outlined in the article as an odd car that will likely change the way we look at commutes.
After all, the vehicle is not only environmentally friendly, it’s an eye catcher. Moreover, the price of the vehicle is well under $16,000, giving SOLO an opportunity to tap into the mass market.
Ultimately, SOLO is doing what Tesla has failed to do. The company is offering a low-priced electric vehicle that the mass market is clearly interested in. Before you argue that interest, consider the more than $2 billion in pre-orders for this relatively inexpensive vehicle.
All in all, the company, which has been making vehicles for more than 50 years, seems to have found its goose that lays the golden eggs with its Solo offering, and investors can’t help but be interested.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to work in the market is that it’s important to follow the news. After all, it’s the news that leads to moves. When it comes to Electrameccanica Vehicles, the news proved to be incredibly positive. After all, while the company hasn’t issued any press releases, Bloomberg outlining the benefits of the investment proved to excite investors as there are plenty to outline. So, it’s not surprising to see that the stock is continuing its run upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), SOLO is trading at $5.70 per share after a gain of $1.37 per share or 31.64% 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 story surrounding the company’s continued work to bring its Solo offering to the mass market. Nonetheless, we’ll keep an eye on the news and bring it to you as it breaks!
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