Electrameccanica Vehicles (SOLO) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Electrameccanica Vehicles faces a significant business risk concerning the Xos Arrangement, which, if unfulfilled, could materially impact its common share prices. The failure to complete the arrangement or experiencing substantial delays, or if the agreement itself is terminated, could lead to adverse consequences for the company’s market valuation. Furthermore, the potential repercussions extend beyond share price volatility; Electrameccanica might confront detrimental effects on its overall business health, financial stability, and operational outcomes. The situation is further complicated by a hefty $6 million termination fee that the company would incur if it opts to terminate the agreement in favor of a more favorable proposal.
The average SOLO stock price target is $0.40, implying 74.22% upside potential.
To learn more about Electrameccanica Vehicles’ risk factors, click here.