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My Thoughts on ElectraMeccanica

Updated: Apr 29, 2021



If you aren't aware of this electric car company that is OK. There are so many types of Electric Vehicle (EV) companies out there that it makes it seem as if you are in the candy isle of the grocery store. So many goodies, but sooo many names. To be honest I had no clue about this company either but last year I was randomly typing in words into my Apple Stock app and SOLO was the word I put in which lead me to the ElectraMeccanica stock ticker SOLO. I found the name cool and did a quick Google search on what they do and found that they are in the process of making EV's. Most of the vehicles (which there are only 3) are not actually on the road and are more concept cars. After finding out what the company does I decided to invest a little bit of money into them but eventually sold out due to high volatility. But as the EV sector of the stock market has been booming, I have been starting to look at the company again. As of now the stock SOLO is around $8 and it is far cheaper than it's competitors such as Tesla (which is around $800 per share). As I have begun my deep analysis of the company to see if I would want to reinvest into the company when the market crashes (so the many many many analysts have been saying for the past year), I have noticed three vehicles the company is working on.


Solo



The picture above is the SOLO electric vehicle. Yep... Definitely a bit weird looking, and definitely something that doesn't really fit the American style car. What I mean by American style cars, I mean rugged like a Ford F-150 or a nice sleek Tesla. This is the very first vehicle that pops up on the ElectraMeccanica website and I realized after clicking around the website a little bit, that the reason why the SOLO is the first vehicle that pops up on the website is because it is the only vehicle that is actually able to be bought.... Except it isn't. As of now you can only reserve the vehicle and the other two vehicles are just concept cars.

What I found interesting about this car is unique it is. It sort of reminds me of what I used to think of Tesla's. I used to think Tesla's looked really weird, but over time I grew to love the design. But as of right now I am still in the early phases of acceptance, since the car looks like a SUV that got cut in half. Seriously, it looks like the designers forgot to finish the car and then decided it was too late to change anything so they just left it incomplete. The design of the car is honestly disgusting and I would definitely not be proud to drive the car. Not only is the design bleh, but the stats are also weak. The car can only reach a max speed of 80 mph, go 100 miles on a charge, and can reach a speed of 0-60 in 10 seconds. Yeaaa, this car is so not competing with the Tesla's of the world. Like this car is wayyyyy out of Tesla's league. So at first glance the company does not look that good in terms of investing in them. But as I looked at the other vehicles that they were looking at, I got a little more excited.


Tofino

The second vehicle I looked at on the website was not much better than the SOLO but at least it looked like a car and had 4 wheels rather than 3. This car is called the Tofino and is not currently available to reserve or buy, meaning this is purely a concept car. Since the Tofino is a concept car there wasn't much stats or pictures to look at so there isn't much to judge. The one actual photo ElectraMeccanica did provide was insightful.



From the photo above, the Tofino kind of reminds me of a Porsche which is on the right side. Both have a bubbly look to them, which to me means that they both are smooth and curvy rather than sharp. An example of a car that I think looks sharp is the Audi r8.


Doesn't the Audi look much sharper to you? It should because the use of lines makes the car a sharper looking car. This can especially be seen with the front of the car. On the other hand the Tofino car looks as if it doesn't know what lines are. The car looks like they took one sheet of metal and wanted to make it looks as seamless as possible. Personally I dislike the style since it reminds me of a 2008 Honda Civic merged with those hover cars you see in futuristic movies.



Anyways, in the car sucks just as much as the SOLO in terms of design, but its a wee bit better since it doesn't look like it was cut in half and forgotten about. Another reason the car is better than the SOLO is because of the stats. With the "performance" title, you get a car with 250 mile range, 125 mph, and can get to 0-62 mph in 5 seconds. These stats are still pretty crummy compared to Tesla's performance car (Tesla Model S) which has a 390 mile range, can go to 200 mph, and reaches 0-60 in 1.99 seconds (so basically 2 seconds, but Tesla has to be cool and say 1.99 seconds I guess).


eRoadster

The last car I saw actually impressed me. One because it was such a different style of car, and two it was actually GOOD looking. The last car is called the eRoadster, which in it of itself is way cooler of a name! The eRoadster can be pre ordered, has a range of 155 miles, and can reach 0-60 in 6 seconds. Still crummy stats but the design makes up for the lack of performance.



I mean doesn't that car just scream vintage!?! The reason why I love the design of this car so much is because old looking cars that I see run on gas and they usually produce more carbon emissions which are bad for the air quality. So in general I always disliked the fundamental of an old car from the 1900s because they were so inefficient, but I still thought they looked cool and wished that they could be upgraded and get some modern updates. That is why I like Mercedes cars so much because they combine modernism and older style together. This can most be seen with the car's interior. The chrome accents and modern tech combine vintage with modernism which is a unique spin on car design.

But after seeing the eRoadster, I think Mercedes may have just been replaced. If ElectraMeccanica can make the stats much better and continue with the theme of taking old cars and giving them a modern touch, then I think the company can be competitive. There are so many car collectors/car enthusiasts that would find the product so cool. I think ElectraMeccanica is far better at this business model rather than trying to create their own modern designs meant to compete with Tesla because competing with Tesla is gonna require much better design and far better specs. Another reason why I think ElectraMeccanica should change their business strategy to this theme of taking old car designs and adding a modern twist is because it is very unique and is something that you do not see in the EV market. Most EV companies try to create ultra modern designs rather than going backwards and using antique like designs, such as the Lexus EV's.


Final Thoughts

In general after looking at the website, I think the company has potential but they are extremely risky since they are in the beginning stages of becoming an competitive EV company. If the stock dropped 20-50% in value, then I would consider buying a few shares to see how it goes. The stock has seen a major uptick in value since November of 2020. During those months the stock was around $2 per share and it peaked at $10 per share in the later half of the month. Since then the stock has only gotten down to around $6 per share (which was in early January) and is currently at $8 a share. So yea, over 100% gain in as little as 4ish months suggests the stock may be overvalued similar to the GameStop (GME) stock. While the stock is not nearly as overvalued, SOLO has still seen extraordinary gains with little news to back up the large gains. Of course this is not financial advise and this is purely for entertainment purposes. Personally I am going to wait and see what happens for the next few months to see if the stock doubles in value. In general I would like to get into the EV sector of the stock market, but I feel as if I am too late so I am waiting to see what the companies will do when excitement goes away.


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