view transcript

Annie Gaus [00:00:01]
Electric vehicles are everywhere and no we're not just talking about Tesla. Electra Meccanica is rolling out. The Solo which is a one seater EV that'll run you just over 15K. The carmaker also makes a sports car and a roadster but CEO Jerry Kroll says that the solo is going after one big market. That's the 83 percent of people who commute by themselves in a gas powered car.

Jerry Kroll [00:00:26]
In the United States alone that's 140 Million people. Second big market, last mile deliveries Amazon, Alibaba Baba, pizza companies, 7-Eleven. The third big market is car share. The biggest problem that car companies have is parking. When you could park two and a half of these in every parking spot and over 90 percent of car shares are just one person. That's a massive market. It has 17 kilowatt hour lithium ion phosphate battery pack in it, totally patented, the swing arm is at the back real with the carbon fiber belt. 85 mph top speed 100 mile range. 4000 cycles on the battery. So, you're looking at like 4000 times a hundred miles which is forever. And to recharge it if you drive it right to zero you plug it into any regular car plug outlet. It takes three hours to fully recharge it. You couldn't ask for a more intuitive simple to own vehicle. The key goes in like you would expect any other car to do, tilt the steering wheel. Turn the key over just once you're a click in the back. It's on! Parking brake, killer stereo.

Annie Gaus [00:01:35]
I took the solo for a short drive and lo and behold it was easy enough to drive even for me. But Kroll said it's not just about the urban commuter like myself. The one seater EV might also be sold to businesses as delivery vehicles or as part of a car share system. And Kroll says there's more news on that to come and more demand on the way.

Jerry Kroll [00:01:57]
Our first two years are sold out, twenty three thousand orders. So we have 5000 coming out in calendar year 2019, 20,000 the following year. I expect that as these cars. Are delivered now in San Francisco Los Angeles our sales are going to spike.

When it comes to electric vehicles, Tesla (TSLA) isn't the only game in town. 

As major automakers get ready to roll out their own EVs in the coming quarters, Canadian carmaker Electra Meccanica (SOLO) is betting on a potentially sizable market. 

Electra Meccanica produces a roadster and a sports car, but has just begun rolling out a three-wheeled, one-seater electric vehicle, called the Solo, that CEO Jerry Kroll says is ideal for the 83% of commuters who ride by themselves. 

Related. Don't Let the Indices Mess Up Good Trades

"In the United States alone, that's 140 million people," Kroll told TheStreet. 

The Solo costs $15,500, and Kroll -- who cut his EV teeth at the same Bay Area research lab as Tesla co-founders Marc Tarpenning and Martin Eberhard -- compares the smaller EV to an iPhone versus a Mac. Solo's stock is up over 400% YTD.

The smaller size also packs a punch, Kroll said: It charges in three hours, has a range of 100 miles and a top speed of 85 miles per hour. 

But it isn't just urban commuters that Electra Meccanica is going after. Kroll added that delivery businesses, such as Amazon (AMZN) as well as carshare companies could benefit from the Solo, given its lack of fuel costs, compact size, and storage space. 

Related. Amazon Remains One of the Best Stories in Technology

So what's the plan from here? For starters, you can expect to see 5,000 of these 3-wheelers zipping around Los Angeles. And by 2020, Kroll said you'll see another 70,000 on the road. The company has production facilities in Canada and in Zongshen, China, which will ramp up throughout 2019.

As of late December, Electra Meccanica had 64,154 vehicle pre-orders across all models, including 23,030 for the Solo.  

U.S. electric car competitor Competi Arcimoto Inc. (FUV) saw a bump on Thursday from (SOLO) 's news.

Watch the video to see the Solo in action.

Related. Tesla Keeps Struggling to Make Good on its Ambitious Targets: Tech Check Blog

Want to know if  (SOLO) ,  (TSLA) or (AMZN)  are in Jim Cramer's Action Alerts Plus Portfolio? Click here to find out.

Go Behind the Label of the big tech companies