|Bid||2.8300 x 1100|
|Ask||2.8600 x 800|
|Day's Range||2.8100 - 2.9500|
|52 Week Range||0.9000 - 7.4800|
|Beta (3Y Monthly)||1.41|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Electra Meccanica (SOLO) burst onto the EV scene recently. Based in Vancouver, the company is devoted to developing fully electric cars, with multiple styles.
(Bloomberg) -- Electra Meccanica Vehicles Corp., the maker of a tiny three-wheeled electric car, saw its shares surge in early trading Tuesday as another Wall Street analyst added to bullish commentary.The carmaker aims to tap the market for short-distance commuters with its flagship SOLO vehicle, Roth Capital Markets said in a note to clients. Roth’s Craig Irwin started coverage of the microcap stock with a buy rating and $7.50 price target, the highest among analysts tracked by Bloomberg, and more than three times the last closing price.Shares of the Vancouver-based company rose as much as 32% on Tuesday, their biggest gain since March 20. The shares have risen more than 177% this year.“Mass-production of the SOLO is slated to begin later this year, and we believe the company’s 962 SOLO deposits and 23,340 pre-orders as of April 20 suggest a healthy demand outlook,” Irwin wrote. “We believe the market Electra Meccanica is looking to serve is larger than many might appreciate, as more expensive comparable vehicles often achieve substantial volumes.”In addition, Roth expects the introduction of Electra Meccanica’s Tofino two-seater electric roadster in 2021 will be a major driver of profitability given its $50,000 price tag and expected mass market appeal.(Updates shares in third paragraph.)To contact the reporter on this story: Catherine Larkin in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Courtney Dentch at email@example.com, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Electra Meccanica Vehicles Corp (NASDAQ: SOLO) announced Monday that it obtained a $2,500 consumer rebate designation from the Oregon Clean Vehicle Rebate Program. The program is part of the "Go Electric Oregon" initiative, which aims to have at least 50,000 registered electric vehicles on Oregon roads by 2020. A number of similar electric vehicle incentives are available in several U.S. states including Colorado, Connecticut, Delaware, Maryland, California, Massachusetts, Oregon and New York.
Earlier this week Daimler (DDAIF) announced it is ending sales of its all-electric Smart cars in the U.S. and Canada, where the small but snappy brand struggled to find traction with consumers more enamored of larger vehicles. The Smart car's struggles haven't deterred Electra Meccanica, a Canadian manufacturer that is betting North Americans will sign on to its mini EV, a single-seat electric vehicle dubbed the Solo. Eighty three percent of commuters drive to work by themselves, typically in four-person cars for a commute that averages 40 miles or less, said Lorenzo Caprilli, Electra's senior vice president of sales and marketing.
So far in 2019, Tesla (TSLA) stock has been extremely volatile, trading in a wide rage and making very little progress overall. Amid more of TSLA stock's trademark trading action, the company itself is in the midst of a critical transformation that will completely redirect investors' bull thesis this year.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsTesla may have made it through the growing pains of Model 3 "production hell" in 2018. But now that it has somewhat hit its stride in ramping up production, the electric carmaker will need to prove to investors that there's a big enough market for the Model 3 to justify TSLA stock's sky-high valuation. Next Frontier For Tesla StockWedbush Securities analyst Daniel Ives says the 50% cut in U.S. electric vehicle tax credits in 2019 will likely weigh on Model 3 demand. In January, Tesla cut prices on all models by $2,000 to partially offset the reduced tax credit. The company subsequently cut prices for the Model 3 by another $1,100 following the end of its customer referral program.It remains to be seen how big of an impact the tax credit will have on Tesla's U.S. demand. In the meantime, Ives says Europe is a major test for Tesla."With the U.S. EV tax credit getting cut by 50% to $3,750 and then again to $1,875 on July 1, the Tesla demand story in 1H19 has clearly shifted from the U.S. to Europe as pent-up Model 3 demand in the region will be the major swing factor for the stock in the near-term," Ives recently advised clients. * 7 Healthy Dividend Stocks to Buy for Extra Stability Ives says China and Europe will be proving grounds for Tesla. The company has famously had a number of logistical and production stumbles in the U.S. He says Tesla stock will be "show me" shares as its U.S. narrative shifts from production to demand and margins in the near-term. The Good News …The most bullish news for Tesla investors from the fourth-quarter report is that Tesla is not strapped for cash, for now. Tesla reported $910 million in free cash flow in Q4 and ended the period with a cash balance of $3.7 billion. In addition, Tesla said it is paying for its Shanghai Gigafactory using low-cost debt from local Chinese banks. That's good news for investors concerned about headline risk related to a potential U.S. equity offering in the near-term. Investors are certainly paying attention to the carmaker's financial health. Tesla stock tanked to as low as $279 in January after the company missed Q4 delivery expectations and announced it was laying off 7% of its workforce. TSLA stock subsequently bounced back as high as $324 in the weeks that followed. The bullish move came after Q4 earnings showed the company is not in a near-term cash crunch. The cash situation is especially reassuring for investors after CEO Elon Musk admitted in a recent interview that Tesla was within weeks of bankruptcy last year. … and the Bad NewsThe bad news for investors is that Tesla is entering uncharted territory when it comes to mass market demand. The company has had tremendous success with its luxury vehicles and has established a loyal base of satisfied customers. However, it has yet to come anywhere close to its low-end Model 3 target price of $35,000. The recent $1,100 price cut dropped the base cost of the Model 3 to $42,900. The average sales price for new U.S. vehicles is currently around $37,500, but that number is heavily influenced by pricey truck and SUV sales. * 7 Financial Stocks With Accelerating Growth Bulls say the Model 3's mass appeal will drive Tesla's long-term growth story. But as the Model 3's prices drop, Tesla's margins will fall as well. At the same time, legacy automakers are investing heavily in EV technology and startups like Rivian and Electrameccanica Vehicles (NASDAQ:SOLO) are gunning for Tesla's market share. Tesla Has a Lot to ProveThe first thing Tesla will need to prove is that there is mass market demand for the Model 3. Europe and China should play a large role in that thesis in 2019. The second thing Tesla will need to prove is that it can meet that demand at a reasonable margin. If not, Tesla's business will ultimately look a lot like low-margin operations of Ford (NYSE:F) and General Motors (NYSE:GM). The only difference among the three stocks would be that TSLA stock trades at 2.4 times sales. Ford and GM shares both trade below 0.4 times sales.There's no question 2018 was a volatile and unpredictable year full of challenges for Tesla and its investors. Tesla stock bulls think the most difficult part of Tesla's maturation process is behind them. They may be in for a rude awakening in the next several months.As of this writing, Wayne Duggan held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Europe Presents Tesla Stock With Next Big Challenge appeared first on InvestorPlace.
Canadian carmaker Electra Meccanica says it's going after one big market -- or maybe three. Watch the video to find out how.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in Electrameccanica VehiclesRead More...
Electrameccanica Vehicles Corp (NASDAQ: SOLO) is the latest example of the powerful market combination of a low float and high trading volume. Electra Meccanica is one of a number of low-float stocks that have experienced major short-term rallies on little or no news in recent quarters. When shares start to rise, a flood of momentum traders coupled with a limited float can lead to parabolic spikes in share price.
The market was surprised by much worse than expected retail sales numbers for December but there seems to be some concern that the numbers may be inaccurate to some degree. The numbers suggest that retail sales are declining at an annualized rate of over 12%, which hardly seems possibility. A news item just hit that U.S. and China are still far apart on demands and that is causing a fast spike back down.
Favorite son Arcimoto could have competition in Oregon next year, when it expects to begin large-scale production of its three-wheeled electric vehicle. An entry out of Canada — by way of China — is on its way, targeting the region with support from a noted local brand builder. Vancouver, B.C.-based Electra Meccanica showed off its Solo model Tuesday evening in downtown Portland.
IPO stock Electra Meccanica doubled, after the company announced more than 64,000 preorders for its electric vehicles, representing $2.4 billion in potential sales.