|The electric vehicle market has come a very long way since Tesla first began selling its iconic Roadster in 2006. No longer is an electric vehicle (EV) a novelty limited to those who wish to make a sustainability statement. And here is one stock from a company that is producing and selling vehicles in North America. |
Vancouver-based Electra Meccanica (NASDAQ - SOLO) manufactures the single-seat Solo commuter EV and the Tofino two-seat electric sports car. It was first listed on the OTCBB then moved to the NASDAQ in August 2018 under its current symbol SOLO. The single-seat vehicle sells for $15,500 (USD) less federal and state incentives.
According to a January 7 news release, the company currently has more than 23,000 SOLO reservations, and is targeting 5,000 deliveries for 2019 and 20,000 for 2020.
|Figure 1. SOLO Daily Chart.|
|Graphic provided by: Freestockcharts.com.|
|I have written articles about Electra Meccanica in other publications and interviewed CEO, race car driver and licensed pilot Jerry Kroll last week, who is clearly very bullish on the future of electric transport. |
"Tesla recently completed an endurance test on the Model 3 electric motor. After running for the equivalent of one million miles (1.6 million kilometers) the motor and gears still looked new," he says.
|"Compare the thousands of moving parts in an ICE and transmission versus just one moving part in an electric motor. A gas motor is exploding, an electric motor is spinning. It just makes common sense that the latter will be safer, more reliable, cheaper to operate and last longer."|
"Add the fact that the electric motor is 400% more efficient than the typical internal combustion engine, costs about 75% less to operate and maintain, it's amazing to me that gas-powered vehicles are still popular."
Like many technology stocks, SOLO took a hit in the October-November stock comeuppance, but as Figure 1 shows, it appears to be building a bottom, posting a potential bullish inverse Head & Shoulders pattern in the process. The pattern will be confirmed if the stock breaches its pattern neckline at $1.65 on above average volume.
I'll be watching this baby closely!
|Disclosure: Matt owns no SOLO stock, but Electra Meccanica is a potential client.|
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