ElectraMeccanica Vehicles Corp.

ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a Canada based that designer and manufactures sustainable electric vehicles (EVs). Its operating segments are: Electric Vehicles and Custom build vehicles. The SOLO, a purpose-built single-seat electric car, is the company's flagship vehicle.

Key Highlights

• The company reported operating losses of USD 17.2 million in Q3FY21 (ended September 30, 2021) compared to USD 6.5 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term deposits) of USD 228.8 million vs. USD 129.5 million at the end of December 31, 2020.
• Its ROE was -91.9% in FY20 vs. the industry median of 5.5%.
• Negative Gross Margin of -23% in FY20, whereas Peer’s Median stood at 23.4%.
• On February 23, 2022, Mountain Mike's Pizza, a 40-year-old regional pizza franchise headquartered in Northern California with more than 200 locations across California, Arizona, Oregon, Nevada, and Utah, has announced an initial fleet purchase of 20 SOLO Cargo EVs.
• On February 15, 2022, SOLO and Faction Technology, Inc. announced a non-binding collaboration agreement to demonstrate a pilot deployment of Faction's autonomous and remote vehicle operating technology on the SOLO EV Platform.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 1.75 to USD 6.83.
• SOLO's stock price decreased 46.22% and 50.80% in the past six and nine months, respectively.

Technical Price Chart (as of February 23, 2022, at 03:37 PM ET). Analysis by Kalkine

Conclusion: Considering the negative bottom-line, uncertain outlook, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 1.8501, down 3.14%, as of February 23, 2022, at 03:37 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.