Electrameccanica Vehicles Corp (NASDAQ: SOLO) is rocketing early on in the trading session this morning. However, if you’re digging around for a reason for the gains, you might be hard pressed. There have been no press releases issued and no SEC filings made. Nonetheless, there’s a good reason for the gains. Today, we’ll talk about:
- Why SOLO stock is rocketing;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Here’s Why SOLO Is Climbing
As mentioned agove, Electrameccanica Vehicles is having an incredibly strong start to the trading session this morning, but there has been no news released. So, what’s the deal?
It seems as though an article published by Bloomberg is at the center of the gains. The article focused specifically on the company’s vehicle, known as the SOLO.
In the article Bloomberg compared the car to both a Tesl and a Ford Fiesta, calling it, “one of the oddest-looking vehicles you’ve ever seen.” However, in the same sentance, the statement, “and it may just redefine the commuter car” was made.
In the article, the author pointed to the fact that General Motors is shutting down a plant near Toronto as new models of vehicles are taking charge. The article outlined the low cost of the one-seater electrical vehicle developed by SOLO, and pointed out the $2.4 billion in pre-orders.
Ultimately, the article outlined all the positives of the Solo vehicle, not just from a practicality standpoint, but from an environmental standpoint. As the world pushes to move toward cleaner air, SOLO may be in the perfect position to take advantage of market trends.
What We’re Seeing From The Stock
One of the first lesson that we learn when we start to work in the market is that the news leads to moves. When it comes to Electrameccanica Vehicles, while the company didn’t release any news of its own, the writeup on Bloomberg proved to be overwhelmingly positive. Not only did it point to the pre-orders, but the potential opportunity created by this vehicle for the company and its investors ahead. So, it’s not surprising to see that excited investors are pushing the stock on a run upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:27), SOLO is trading at $1.79 per share after a gain of $0.44 per share or 32.59% 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 take advantage of the changing tides in the energy industry and how these changing tides relate to opportunity in the automobile industry. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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