You’ve probably heard: The future involves electric vehicles. Even so, the total cost to the consumer outside of tax subsidies is at least $30,000 for a major automotive brand. In one word, it’s pricey, but EV makers are the talk of the town, EV charging is popping up everywhere and EV stocks are a good way to diversify your investments.
That’s where ElectraMeccanica Vehicles comes in. Priced at $18,500 before destination charges, the company’s flagship Solo EV is priced for perfection. Learn more about whether you want to buy SOLO stock.
How to Buy SOLO Stock Summary:
- Pick a brokerage.
- Decide how many shares you want.
- Choose your order type.
- Execute your trade.
How to Buy ElectraMeccanica Vehicles (SOLO) Stock
Sentiment has shifted positively for electric vehicles over the past few years. During this time, Tesla (NASDAQ: TSLA) proved that if you provide a clean-energy alternative to consumers, they will open their wallets. However, the lingering problem with Tesla which the company hopes to resolve soon is pricing.
Simply put, EVs are very expensive. Today, the cheapest EV you can buy from a major automaker is the Mini Cooper SE, with a pre-subsidy price of just under $30,000 — out of the price range of many consumers.
However, ElectraMeccanica Vehicles hopes to shatter this paradigm with a sub-$20,000 EV. On paper, it’s a wonderful development. But the downside is that its flagship Solo vehicle only seats the driver, hence the name. The Solo only has three wheels, which technically makes it a motorcycle.
Step-by-step guide
- Pick a brokerage.
If you want to take a shot with SOLO stock, you must first pick a brokerage.
As interest in equities trading sparking competition among brokers rises, you will enjoy no shortage of options. In addition, the brokerage industry largely standardized many benefits and incentives, including commission-free trading. Therefore, personal preference will likely dictate your decision.
If you prefer convenience above other factors, then mobile trading apps may fit your needs. On the flip side, if you anticipate trading for a living, then you may want to tap into a capable platform. - Decide how many shares you want.
Deciding how many shares of ElectraMeccanica Vehicles stock you want to purchase encompasses multiple factors. First, you must consider your risk tolerance. You should also analyze the volatility of SOLO stock. Shares traded all over the map since its introduction in 2017.
Once you’ve got a number in mind, take that dollar amount and divide it by SOLO’s market price. Whatever is the whole number is the amount of shares you can purchase. For instance, if you intend to buy $1,000 worth of SOLO stock, you can acquire 162 shares ($1,000 / $6.15 = 162.6).
Some brokers allow you to purchase fractional shares. If this is an important feature for you, include it in your search for best brokers. - Choose your order type.
Because of the constant price fluctuations in the stock market, you must deploy an order type that compensates for this variability. Below is a list of order types available and key concepts to understand.
Bid: The bid is the highest price that a buyer will pay for a stock, which is always lower than the ask.
Ask: Conversely, the ask is the lowest price that a seller will accept. It is always higher than the bid.
Spread: The spread is the difference between the bid and ask. This concept is important because market makers make money on the difference (spread) between their acquisition and distribution of shares. The spread also shows market liquidity. Narrower spreads indicate more liquidity while wider spreads suggest less liquidity.
Limit order: Limit orders afford maximum control and transactional transparency because they only fill at a predetermined price. However, no guarantee exists that the target stock will reach this specific price.
Market order: Market orders offer a guarantee that a request will fill if you place them within normal session hours. However, you pay a price for this convenience because they fulfill at the next available price and at the rate least favorable to you — buy orders on the ask, sell orders on the bid.
Stop-loss order: You can think of a stop-loss order as a market order which protects you from downside volatility. They fulfill at either a predetermined price or the next available price, whichever comes first. The biggest disadvantage to a stop-loss order is that it might execute at a much worse-than-anticipated price if a session opens far lower than the prior session close (also known as a gap-down session).
Stop-limit order: In the same vein, stop-limit orders are protective limit orders. They only execute at a predetermined price. Therefore, gap-down sessions won’t impact you. However, if the target stock’s price never reaches your predetermined price, you would have been better off placing a stop-loss order. - Execute your trade.
You can study how to buy stocks all you want but you won’t get anywhere until you execute your trade. Once you’re ready to buy SOLO stock, take these steps to place a market order:
• Select action type (buy or sell).
• Enter the shares you wish to acquire (or sell).
• Hit the buy (or sell) button.
Limit orders are almost identical to market orders with one exception. While you enter your share count, the brokerage platform will prompt you to enter your limit price. Then, place the order.
Best Online Brokers
Below is a list of some of the best brokers for your consideration.
SOLO Stock History
As a cost-effective commuter vehicle, ElectraMeccanica Vehicles’ Solo appealed to those who travel long, fuel-consuming routes to work. However, the investment proposition didn’t necessarily appeal to buyers who were looking to score on the next Tesla (NASDAQ: TSLA).
However, the narrative changed toward the end of last year, likely because investors anticipated that the pandemic would fade, bringing more workers back to the office. Still, in more recent sessions, the bears attacked this thesis, making SOLO stock a speculative affair.
Pros to Buying SOLO Stock
Take these pros into consideration when you’re thinking about buying ElectraMeccanica stock.
- Price: Starting at $18,500, ElectraMeccanica Vehicles’ flagship Solo competes with other EVs, which end up more expensive even when taking into account federal tax subsidies. Solo drivers may be eligible for a partial rebate, depending on their jurisdiction. Thus, the end cost could be even lower than the already attractive price.
- Purpose: The Solo only has 1 seat. ElectraMeccanica designed it as a commuter vehicle. When you commute in a “normal” car by yourself, you’re paying fuel costs for empty seats and space. Using a one-seater vehicle means you’re maximizing efficiency for your end purpose — getting to the office. No, it’s not a pickup truck, but it could be a popular commuting option for city dwellers.
- Demand: Consumers care about sustainable products. In fact, many retail experts warned companies that to stay relevant, they must promote a “green” mentality in their pipeline. Many drivers looking to make the transition to electric will consider this quirky but cost-effective solution.
Cons to Buying SOLO Stock
Looking for the cons to buying SOLO stock? You can find some:
- American eccentricities: While the idea of a commuter vehicle is an interesting one, the harsh reality is that the American consumer generally does not like three-wheeled cars. Indeed, Americans don’t even like ultra-compact vehicles. It’s no coincidence that modern consumers — despite claims of preferring environmentalism — still gravitate toward SUVs. Market data can only tell you so much.
- Economically impractical: Although the Solo looks attractive on paper, it falls short as a holistic value proposition. You can buy a new combustion-engine car that’s much more practical for a similar price. Moreover, during this economically trying hour, it’s a tough ask for households to own a separate, purpose-driven EV when that money could be put to better use.
- Questions about the post-pandemic world: Before the pandemic when the economy was booming and inflation helped bolster gasoline prices, the idea of a dedicated commuter vehicle appealed to many worker bees. However, in the new normal, a question exists about what the professional environment will look like and whether or not commuting will be as crucial as it once was.
An Out-of-the-Box Concept
ElectraMeccanica solved 2 problems about the daily commute: lowering the price of the increasingly popular EV platforms and making efficient use of the costs of travel. Moving past the gasoline car could be cheaper for everyone, and investing in the electrification of road is a good way to get started on the ground floor.
On the other hand, those 2 solutions have their own issues. First, evidence indicates that consumers largely want normal capacity EVs. Second, the very concept of commuting to work faces big questions due to the pandemic. However, these assets can become growth stocks, and a battery pack powering a car can change the market value of both your current vehicle and your portfolio.
About Joshua Enomoto
His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.