Steer Clear Of These 3 Electric Vehicle Stocks

: SOLO | Electrameccanica Vehicles Corp. News, Ratings, and Charts

According S&P’s Global Market Intelligence, global passenger EV sales are expected to increase to 6.2 million units by 2024, which is almost three times higher than the volume sold in 2019.

Key factors such as an increase in demand for environment-friendly, high-performance, and low-emission vehicles, along with stringent government rules and regulations toward vehicle emission are expected to boost the performance of EV stocks. However, the EV space is starting to get crowded with new players, and not all these players have the potential to deliver positive returns.

Some of the new companies that have gained significantly on market hype lately still do not have winning products or convincing financials. These companies may witness a pullback as the market values them correctly over time.

Electrameccanica Vehicles Corp. (SOLO), Hyliion Holdings Corp. (HYLN), and Velodyne Lidar, Inc. (VLDR) are three stocks we think lack sufficient fundamental strength to justify their price levels. In fact, analysts expect these companies to witness earnings declines in the coming quarters. So, it is advisable to avoid these stocks.

Electrameccanica Vehicles Corp. (SOLO)

SOLO is a designer and manufacturer of environmentally efficient electric vehicles, operating in two segments — Electric Vehicles and Custom Build Vehicles. The company’s flagship product includes a purpose-built, single-seat, three wheeled Electric Vehicle called the SOLO, designed exclusively for urban commuters.

On October 29, SOLO announced that it will expand its retail footprint by opening six new retail locations across the western US within the next month. It also announced that the initial shipment of its production vehicles for its flagship SOLO electric vehicles have arrived in the United States. We think this vehicle rollout strategy will allow the company to meet increasing demand.

SOLO’s revenue has increased 50% year-over-year to CAD$0.30 million in the third quarter ended September 30. However, the company’s gross profit has declined 84.5% from the year-ago value to CAD$10,201. It reported a net loss of CAD$14.90 million over this period.

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John Fitch 1 month ago Member's comment

Never a good idea to rate things based solely on SP performance, especially with stocks that spike to 32 out of total hype and Using that 52-week high to compare and evaluate current SP without looking at what’s transpired before, during and current is quite an incomplete and ignorant assessment.

Ignoring the 137% revenue increase Q3 2020 over Q3 2019, roll out of two new solid state lidar sensors and their effect on increased market presence and dominance, long term contracts with Baidu and local motors, new partnerships with ford, robo-taxi and final mile market own since no others present..

Old Time Investor 1 month ago Member's comment

“In fact, analysts expect these companies to witness earnings declines in the coming quarters. So, it is advisable to avoid these stocks. As $HYLN has no appreciable revenue they base this claim on the fact that HYLN spent more money this quarter. But that’s to be expected with going public and other one-off costs. VLDR only gets analysis based on technical measures so it’s incomplete. Got example, I think you’ve got to be crazy to think that $VLDR will struggle with earnings.