- On Thursday, November 19, the stock price of Electrameccanica Vehicles Corp (NASDAQ: SOLO) increased by 39.51%. This is why the stock price surged.
On Thursday, November 19, the stock price of Electrameccanica Vehicles Corp (NASDAQ: SOLO) increased by 39.51%. Electrameccanica is known for making a three-wheeled electric vehicle called the SOLO, which is priced at $18,500. The SOLO offers a 100-mile maximum range and an 80 MPH top speed. And Electrameccanica is also selling a four-wheel two-seat vehicle called the eRoadster, which has a starting price of $124,900.
Ever since Electrameccanica reported its earnings last week, its stock price has been surging. In the past week, the company’s stock price has increased 83.96% and the momentum has been driving high volumes of trades. Over 90 million shares of the company’s shares were traded yesterday.
Last week, the company reported stronger-than-expected Q3 2020 results. Analysts were expecting a loss of $0.11 per share, but the company ended up posting $0.19 per share according to Fool.com. But under GAAP, Electrameccanica lost C$14.9 million, which is about 3 times the amount it lost a year ago of C$5.3 million.
This loss does not come as a surprise as management said it only just started the production and delivery of its first shipment of SOLO EVs in the U.S. in Q3. And this first shipment is not going to consumers yet as it is going to be used specifically for high ROI activities like press events, marketing, test drives, etc. These marketing activities are expected to drive consumer demand for the SOLO.
Shares of Electrameccanica also seem to be benefitting from the momentum of the electric vehicle space in general: China-based electric vehicle companies Xpeng, Nio, and Li Auto reported better-than-expected earnings recently; Tesla was recently added to the S&P 500; and Nikola’s discussions with a GM partnership is still ongoing.