The automobile industry is undergoing a major transformation. The classic combustion engine is no longer the dominant force. We are witnessing the arrival of electric vehicles.
Electrameccanica Vehicles (SOLO stock) manufactures the world’s first electric vehicles that are capable of reaching speeds of 200 km/h.
We think that ECTY is ahead of the curve in this new industry.
Its vehicles are not only fast, but also zero-emission.
We think that ECTY is an under-the-radar stock that investors should be watching.
Introduction
Being innovative is a key part of being successful in any business.
Yet, one of the most important aspects of being innovative is to be able to outlast your competition. A key part of being innovative is to be able to stay ahead of the curve.
One of the hottest industries right now is automotive innovation.
The electric vehicles are set to take over the market in the years ahead.
In fact, we think that electric vehicles will replace combustion-engined vehicles entirely within 20 years.
But, instead of using a conventional combustion engine to get from Point A to Point B, electric vehicles (EVs) will be able to operate on a single charge (with charging speeds much faster than traditional charging methods).
Electric Vehicles
ECTY manufactures two products: the single-passenger SOLO, and the two-passenger InTruck.
ECTY plans to produce a total of 3000 units of SOLO and 5,000 units of InTruck per year.
ECTY will launch its most important and advanced product, the SOLO 800, in the second quarter of 2018.
The SOLO 800 has a range of over 200 miles on a single charge.
The company has received over 80 pre-orders for SOLO 800, which provides electric mobility to lower middle class families for less than $10,000.
InTruck is a capable rig that can hold a payload of up to 600 pounds.
The company has developed a mobile manufacturing platform that will enable ECTY to rapidly scale production and produce InTruck for immediate deliveries. That makes SOLO, together with SENS stock, one of the investment in the market right now.
We think that ECTY is in the early innings of this massive transition.
Electrameccanica Vehicles
Headquartered in Vancouver, BC, ECTY has assembled a strong team of automotive industry veterans. This includes founder and CTO (Chief Technologist) Kyle Mirza, who spent over a decade at Tesla (NASDAQ:TSLA) as a Mechanical Design Engineer.
Another employee of note is Raji Shah, who is credited with originating the no-nonsense zero-emission vehicle called the Carbuloo.
Beyond its strong management team, ECTY has assembled an extensive research team that has created an impressive list of patents. For instance, the team received a patent for its leading-edge folding EV technology.
In addition to its patents, ECTY has published a white paper outlining its strategy. The paper details its manufacturing process, sales structure and current product line.
Features of ECTY Cars
ECTY’s first model, the EPS 100, has a top speed of up to 90 km/h. Its range is also quite impressive, up to 150 km.
ECTY has a scalable business model. It manufactures the EPS 100 and charges for its use through subscriptions.
ECTY has plans to build an additional 30 models by 2020. It plans to achieve a 20% gross margin by 2020.
It has no debt and generated positive free cash flow of $277,000 in the last six months.
We also like the fact that ECTY has an exclusive distribution agreement with the world’s largest car dealer, Paramount Group.
Establishing its distribution channel is a key step for ECTY, which is still trading on the over-the-counter market.
ECTY’s partnerships also provide it with access to $135 million in the U.S.
The ECTY Stock
ECTY is a US-based automobile manufacturer that manufactures and sells electric vehicles.
ECTY is a spin-off of Terrafugia. In 2014, Terrafugia co-founder and CEO Carl Dietrich merged his company with Lucas Cervini, a founding member of ECTY and former CTO of Terrafugia. Cervini was the CTO at Tesla (NASDAQ:TSLA) for almost four years before departing the company in 2014. He also co-founded Integrated Solar Systems (ISSI) and served as President and CEO of SolarCity (NYSE:SCTY).
The two co-founders retained control of the company and renamed it ECTY. The new name was in homage to Nikola Tesla, the visionary inventor who helped invent the light bulb and electric motors.
ETS, SolarCity, SCTY, ISSI, and ISCC are all subsidiaries of Terrafugia.
