Citron Calls Electrameccanica A 'Complete Joke'

The rally in electric vehicle-related stocks has not been missed by Citron Research. The short seller is out with tweets Friday hitting one of the fastest growing names in the sector.

What Happened: Citron hit Electrameccanica Vehicles Corp SOLO. The first tweet calls SOLO “a complete joke” and gives the company a $2 price target.

“Where other EV might be overvalued, this is laughable,” the tweet said.

Citron noted Electrameccanica has spent under $6 million on research and development over the last 12 months and has delivered a total of six cars in two years.

The second tweet goes into the $2 price target and notes there is “nothing here.”

$SOLO is the EV trade for the real sucker..not one real institutional investor here....they had a going concern just a few weeks ago. OMG..over $1 bil mkt cap

— Citron Research (@CitronResearch) November 20, 2020

Related: ElectraMeccanica's CEO On US Assembly Plans, Tesla, Driving SOLO

Why It’s Important: Last week, Citron released a report on Nio NIO criticizing the electric vehicle company's valuation, saying it "can never be justified.”

Electric vehicle stocks that have run up without strong sales or upcoming model releases could be the target of short reports due to the increase in valuations here.

Price Action: Shares of Electrameccanica were up 16% to $11.25 at the time of writing. Shares hit new highs of $13.60 earlier Friday before Citron’s tweets.