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Electrameccanica Vehicles Corp SOLO

ElectraMeccanica Vehicles Corp. is a Canada-based designer and assembler of environmentally efficient electric vehicles. The Company is focused on exploring other strategic third-party opportunities and potential options for its business primarily within the electrification sector, which includes mergers or acquisitions of other assets or entities, collaborations, including partnerships and joint ventures, divestitures, and other potential transactions.


NDAQ:SOLO - Post by User

Comment by hintonkidon Nov 24, 2020 10:09am
237 Views
Post# 31959989

RE:And why the 20% drop?

RE:And why the 20% drop?The drop is likely due to a couple of things.  Firstly the stock price has run up so quickly that the stock may have become over-valued and traders are taking profits.  The second contributing possibility for the sharp decline may have to do with the just announced  $200 Million shelf finance credit line that the company can draw from.  It is possible that once the share price has dropped enough, in the eyes of the day traders they will begin piling back in again for another run up.  I call this churning where they run up the price, take their profits driving the price down a lot with the aid of shorters and then run it back up again and repeat the proceedure.  It usually ends when some very strong news comes out and they can't control the price and have to let it ride until the price reaches it's next plateau.  It could be volitile here for a while.  Investors do have some news to look forward to though.  The company has indicated that they should be making a decision as to which of the final two locations they will chose for the new assembly facility for their US operations expected to come at or near the end of this month.  Also, they have six new dealership locations that should be coming on stream at some point soon as well and they should have new vehicles arriving in the US on a steady basis to stock the six new dealerships as well as the 4 existing dealerships and I expect that the company will likely begin delivering vehicles to their owners that had pre-ordered.  So there is a lot that investors have to look forward to in the coming weeks and months ahead.
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