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Stifel initiates coverage of ElectraMeccanica with a Buy rating on SOLO roll out in US

In a note to clients, Stifel said the Vancouver firm is establishing a leadership foothold in the emerging -- and affordable -- EV market

ElectraMeccanica - Stifel initiates coverage of ElectraMeccanica with Buy rating on SOLO roll out in US
The SOLO EV is a three-wheeled, single-passenger car that boasts a top range of 100 miles and speeds of 82 miles per hour

Stifel has initiated coverage of electric vehicle maker ElectraMeccanica Vehicles Corp (NASDAQ:SOLO) with a Buy rating, noting that the Canadian company “has a compelling lead in the high-growth affordable EV market.”

The Vancouver-based firm is now building its SOLO EV, a three-wheeled, single-passenger car that boasts a top range of 100 miles and speeds of 82 miles per hour on a 17.3-kilowatt-hour battery pack and sells for $16,250 – about half the price of a Tesla.

The EV, which is expected to go on sale in late 2020 in California Arizona, and Oregon, features front and rear crumple zones, side-impact protection, roll bar, torque-limiting control, as well as power steering, power brakes, air conditioning, and a Bluetooth entertainment system. 

READ: ElectraMeccanica gets price target boost from Roth as SOLO EV shows commercial promise

In a December 16 note to clients, Stifel said ElectraMeccanica is establishing a leadership foothold in the emerging -- and affordable -- EV market.  

“We see significant secular growth ahead for the short-range, commuter EV market, which is currently underserved by existing or imminent products.” analysts J Bruce Chan and Roxanna Islam wrote. “The SOLO is a highly-attractive platform for the high-growth e-commerce last mile delivery market, as well as commercial fleet market, and expanding shared mobility market.”

The analysts also pointed to other company strengths such as a strong management team, a less-risky manufacturing strategy versus industry peers, and a “reasonable production and product ramp” strategy.

In addition, Stifel has a $9 price target on the stock -- which based on the analyst's 2023 sales estimate of C$177.5 million for ElectraMeccanica. The company’s stock recently traded around $7.35 a share, well off its 52-week high of $13.60.  

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

 

 

Quick facts: ElectraMeccanica

Price: 7.55 USD

NASDAQ:SOLO
Market: NASDAQ
Market Cap: $594.26 m
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ElectraMeccanica has first SOLO EV arrive in North America as company opens...

ElectraMeccanica (NASDAQ: SOLO) CEO Paul Rivera joined Steve Darling from Proactive Vancouver with news the company has announced they have SOLO’s in North America! The first cars to arrive will be used in marketing, advertising, and retail activities. Rivera also told Proactive the...

on 10/29/2020

2 min read