Shares of ElectraMeccanica Vehicles (SOLO -2.05%) rose 168.7% in November, according to data from S&P Global Market Intelligence. The Canada-based electric-vehicle (EV) company's stock surged following better-than-expected third quarter results, and also benefited from momentum for the broader market.
ElectraMeccanica published third quarter results on Nov. 10, posting sales and earnings for the period that crushed the market's expectations. The company posted a non-GAAP (adjusted) earnings of $0.19 per share, while the average analyst target had called for a loss of $0.11 per share. Sales for the period came in at 300,000 Canadian dollars -- up from 200,000 Canadian dollars in the prior-year period.
The EV market is growing at a rapid clip, and investors have aggressively poured into the space over the last year. ElectraMeccanica has attracted attention for its single-occupant, three-wheeled vehicles, and the stock has soared amid strong momentum (and explosive valuation gains) for industry leaders including Tesla and NIO.
ElectraMeccanica Vehicles stock has given up a bit of ground early in December's trading. The company's share price has dipped 1.7% in the month so far.
ElectraMeccanica is a young and relatively small player in the EV space, having recently delivered its first shipment of solo vehicles in the U.S. However, these vehicles will be used for promotional purposes, and the company still has yet to deliver vehicles for the consumer market. The EV specialist is also designing new versions of its three-wheeled vehicles that will be tailored for local deliveries and other commercial purposes.
ElectraMeccanica is a small-cap company operating in a fast-growing market, but demand for its products remains highly speculative. ElectraMeccanica Vehicles is valued at roughly $539 million and is valued at 864 times this year's expected sales.