Electra Meccanica (NASDAQ: SOLO) established in the year 2015, is the Canada based Electric vehicle company which has recently launched its IPO in August, 2018. The company is operating in the design and manufacturing of the electric vehicles. Vehicles are designed with a view to make commutation more efficient, environmental friendly and cost effective. Company develops innovative, all-electric SOLO, a single passenger vehicle which is developed to revolutionize the commutation process and is working on the development of high performer two-seater electric roadster sports car, Tofino. Company through its subsidiary, Intermeccanica is successfully building high-end specialty cars.
The company published its corporate update on October 22, on its pre-order on vehicles. Company encountered heavy demand for all its electric vehicle across all its models. Total of 64,154 preorders across all models were received by the company as on October 22. Solo single passenger electric vehicle received 23030 preorders of approximately $15500. Tofino electric roadster received 41124 preorders of approximately $50000.
A refundable deposit of $250 for the SOLO and refundable deposit of $1000 for the Tofino is required. Along with the refundable deposit, preorders require a letter of credit, or letter of interest. All orders are executed under non-binding arrangement. Potential sales represented by the pre orders is approximately $2.4 billion at expected MSRP. The current data released on the company preorders and the potential sales figure indicates that the company has large market to tap into and work to scale the vehicle production with respective strategic manufacturing partners.
Company has significant growth opportunity for its SOLO vehicle. The opportunity for the SOLO electric vehicle lies with the individual commuters and has tremendous potential for commercial applications too.
Tofino roadster is unlike Tesla four-seater super car. Tofino roadster moves at 0 to 60 mph in 7 seconds, and has a range of 250 miles, with a base price of $50000 and top speed of 125mph.
The company is currently working with 7-11 convenience retailers. The retailers are working on the evaluation of the electric vehicles manufacture by the company, for its usage in local package delivery operations.
Company is focused on delivering, efficient, affordable and exhilarating experience of electric vehicles to its huge customer base across all domains. Company remained well on track with the delivery of the first schedule of production of the electric vehicles to the existing pre order customers during the fourth quarter of 2018. Company expects to deliver around 5000 vehicles over the period of 2019.
Electra Meccanica share prices touched the higher levels of $7.25 on an intraday chart on October 29. Share closed at the level of $2.18 on October 28. On an intraday chart, the scrip opened with a gap up at the levels of $5.6 from Friday closing levels. The scrip has gained almost 108% from its Friday closing at $2.18. Management expects to maintain the scheduled delivery along with delivery of next set of orders of the electric vehicles across all models over the period of 2019. Meanwhile, the stock last traded at $4.55 as at October 30, 2018.
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