Competition in the electric vehicle market is beginning to intensify. Electra Meccanica Vehicles Corporation (NASDAQ: SOLO) is a Canadian manufacturer that develops electric microcars. Formed in 2015, its stock is quickly becoming a power mover for alternative investors.
While Tesla concentrates on practical passenger cars with some high-performance variations, Electra Meccanica leans more towards niche enthusiast vehicles. Its roadster designs aren’t practical and likely won’t offer impressive mileage when they enter production. However, they have the potential to attract discerning clientele who are looking for fun experiences on private tracks and country backroads. The company’s flagship ‘Solo’ electric vehicle is already on the market, and its popularity as an affordable commuter vehicle is increasing.
The company secured $20 million in fresh funding when it offered 10,000,000 common shares in July at $2.00 each. The stock has already grown since then, and analysts see it breaking past $5 in the short term. For bargain minded investors, the upside could be significant.
There’s risk in this pick because the company is unproven in the auto industry. However, investors looking for exposure at the highly innovative end of the market can consider this pick. Clean electric vehicles are the future of the industry. There’s space for Electra Meccanica to compete in its smaller niche, and with a bargain stock, it’s worth considering as a cautious investment.
- 1 Year Price Growth: 83%
- YTD Price Growth: 09%
- 3 Month Price Growth: 19%
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