What Is Electra Meccanica Vehicles And Why Is Its Stock Up 100%?

Electrameccanica Vehicles Corp SOLO stock more than doubled Monday after the company announced it has received more than 64,000 preorders for its vehicles.

U.S. investors may not be as familiar with ElectraMecannica as better-established electric vehicle companies like Tesla, Inc. TSLA, but the popularity of the company’s vehicles is putting Wall Street on notice.

The Numbers

Electra Meccanica said Monday it has 23,030 pre-orders for its Solo vehicle and 41,124 pre-orders for its Tofino sports car. Combined, the preorders represent $2.4 billion in potential sales for the $60.2 million company.

In addition, Electra Meccanica said it's working with 7-Eleven to evaluate potential use of its vehicles for local package delivery.

Electra Meccanica’s move was so big Monday that it initially triggered a sympathy buying in U.S. EV maker Arcimoto Inc FUV, which makes a three-wheeled, two-seated tandem electric motorcycle. After initially gaining as much as 16 percent on Monday, Arcimoto stock is trading down on the day.

ElectraMecannica’s Story

ElectraMecannica is a Canadian auto company that was spun-off in 2015 and only launched its first vehicle about two years ago. Electra Meccanica was spun-off from Canadian parent company Intermeccanica in 2015. Intermeccanica was founded way back in 1959 and now specializes in making replica cars, such as the 1959 Porsche 356 convertible and the 1940 World War 2 Volkswagen Kubelwagen “Type 82.”

ElectraMecannica began delivering its three-wheeled, one-seated, zero-emission Solo EV in May. What makes the Solo unique compared to Tesla vehicles or other comparable EVs launched by U.S. automakers is its price.

Tesla CEO Elon Musk has promised a base Model 3 priced at $35,000, but so far the lowest price point Tesla has been able to hit is $45,000. The General Motors Company GM Chevy Bolt starts at $36,600. The ElectraMecannica Solo’s starting price is just $15,400, making it a much more affordable option for daily commuters.

The Solo has a 100-mile driving range, a top speed of about 82 miles per hour, and a three to six-hour charge time. ElectraMecannica is also working on the Super Solo, a sports-car version of the Solo, and the Tofino, a two-seated EV.

Strictly speaking, the Solo’s three-wheel status makes it exempt from being classified as a car in many locations. This exemption allows the Solo to be lighter and smaller than conventional cars. The Solo is about 2 feet shorter and 1,100 lbs lighter than a two-door Mini Cooper.

What’s Next

Investors will be keeping a close eye on Electra Meccanica’s ability to maintain and grow its sales and potential to gain market share as a lower-cost, more practical EV solution than the costly full-size EVs currently dominating the market.

Shares traded around $4.72 at time of publication, up 116 percent.

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Photo courtesy of Electra Meccanica.