ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) are selling off at lower prices right now but analysts suggest that this is not the time to invest in this stock. The Canadian designer and manufacturer of environmentally efficient electric vehicles might not be the right purchase for you and here’s why.
Since the beginning of 2020, electric vehicles or the EV market has been on the rise. The EV market has seen unprecedented growth in the past few months and all the participating industries of the EV market have been beneficiaries of that crazy hype.
SOLO Stock To Continue Facing Dips In 2021, Experts Forecast
However, now that this year is almost on the end, the EV market is witnessing plunges and dips in several industries of this market. However, analysts prescribe that the dip faced by SOLO stocks is not only triggered by EV market’s ups and downs. This fall might not be recovered once the market starts rising again, according to expert investors and analysts.
The bear case of the ElectraMeccanica Vehicles Corp. has not shown any positive light since the past month at least. The share prices have fallen from $10.81 to $7.00 per share since 20th November. But that is not the end.
With no substantial futuristic product to lay back on, this company might find it increasingly difficult to hold investor support for long. In the upcoming year, several EV companies or the popular ones have a lineup of products for release. But SOLO stocks have no such backup that will allow us to hope this stock might show bullish trends again in the upcoming year. In other words, analysts mention that SOLO stocks lack creditable catalysts to inspire investor confidence. The earlier upsurge in its stock prices happened mostly because at that time any industry invested in the EV sector saw outstanding growth.
So, these stocks might be alluring with its recent cheap prices. But analysts still warn you against buying SOLO stocks right now.