Traders are starting to eye ElectraMeccanica Vehicles (Nasdaq: SOLO), a newer electric vehicle (EV) name that’s starting to float around the stock market. Maybe you’re even asking yourself if you should buy or sell SOLO stock.
As the EV revolution continues to gain steam, investors are trying to find fresh ways to profit from the global adoption of electric vehicles we’re expected to see in the next five to 10 years.
And it’s no secret that this is the time of year investors like to target smaller companies that are out of the public eye… Companies just like ElectraMeccanica Vehicles, which designs and manufactures a peculiar three-wheeled electric vehicle.
So how can investors tell whether they should buy or sell SOLO stock?
In general, betting your money on EV companies is a good bet on the future. However, making a bet on an EV company that’ll show linear and exponential growth — like Tesla (Nasdaq: TSLA) — is a little tricky.
You’ll want to factor in companies that lay critical groundwork for the growth of the EV industry. You’ll also want to look at unique business models and technology that Wall Street hasn’t heard of yet.
Finding the best EV company before the crowd could deliver early investors a bundle of wealth… but investing in the wrong one could mean a complete loss.
So who’s to say for sure if investors should buy or sell SOLO stock?
Traders, today I’m calling BS on SOLO.
Have you seen pictures of this electric car? You expect me to pay $20k for an electric tricycle-looking go-kart?
I just don’t get it.
I think it’s so ridiculous that EV names like this — the ones with no products, vehicles or innovative technologies to back up the hype — are catching bids as the EV mania bubble heats up.
SOLO has no place standing alongside considerably more established EV companies like Tesla and NIO (NYSE: NIO), which can both back up their respective reputations with vehicles consumers have actually produced and sold.
And Citron Research seems to agree:
$SOLO is a COMPLETE JOKE. tgt $2 Where other EV might be overvalued, this is laughable. Under $6 mil R&D last 12 months and 6 cars delivered in 2 years this stock will be the first to trade back to $2 when frenzy over. Nothing here..company run out of an apartment building.
— Citron Research (@CitronResearch) November 20, 2020
According to Citron, which largely focuses on short positions, SOLO has hardly produced any cars in two years and doesn’t have enough research and development funding to back up investors’ hopes for growth potential.
And while it’s no surprise that Citron is trying to drag SOLO through the mud (the company has an active short interest in the stock), there are a couple more reasons why I’m siding with Citron on this one…
If you were asking yourself whether to buy or sell SOLO stock, make sure to watch the video below!