Electrameccanica Vehicles Corp (SOLO)

[dcvancity]

This stock is in a death spiral now that will probably accelerate in its rate of decline, the lower it goes.

The lower the stock goes, the greater the dilution impact will be every time they raise dollars to fund development and their cash burn.

In the absence of any solid news that online bloggers can’t poke holes in overnight, more current shareholders will look to cut their losses and dump the stock, further accelerating the decline.

It obviously will get harder and harder to raise cash in the market as the stock gets riskier and riskier. Future investors are going to want a bigger discount to market than previous investors have received.

Jerry also still has over 2 million options that are exercisable at $0.40 which could further dilute the shares outstanding if he was so inclined.