Ayro Is an Acquired Taste but Has Tremendous Potential Open-minded traders should appreciate AYRO stock as a unique investment in electric vehicles By Louis Navellier and the InvestorPlace Research Staff, Editor, Growth Investor Sep 30, 2020, 12:25 pm EST Austin-based company Ayro (NASDAQ:AYRO), which makes low-speed electric vehicles for urban markets, offers visually unique cars and trucks. And just like the vehicles themselves, AYRO stock is an acquired taste that not everyone will immediately appreciate.
AYRO stock is a love-it-or-hate-it kind of investment. Some folks simply don’t see the value proposition of non-traditional vehicles. In response to this line of thinking, I suggest opening your mind to the possibility that Ayro’s vehicles are built for the future, not the past.
In other words, what’s unfamiliar today might be commonplace next year. You never know when you might see an Ayro electric car or truck at a college or corporate campus near you. Or, you might see one on a delivery route, perhaps at a hotel or resort.
In other words, Ayro’s vehicles are purpose-built yet also versatile. So, if you can envision an expanding market for electric vehicles that are built for practicality, AYRO stock should be on your watch list.
AYRO Stock at a Glance One positive feature of AYRO stock is its low price. At less than $5 per share, AYRO should be affordable for traders with accounts of all sizes.
Along with the low price comes volatility, however. This is to be expected with cheap stocks, which tend to move sharply in both directions. So again, the theme of AYRO stock being an acquired taste emerges here.
Sept. 25 is a textbook example. On that day, AYRO stock moved as low as $2.80 and as high as $3.05. That’s a range of around 9%, and it’s just in a single trading session.
Thus, this isn’t necessarily your father’s or your grandfather’s automotive-sector investment. If you buy the stock and it goes down sharply, understand that it could go back up just as quickly.
Most importantly, keep your position size reasonable with AYRO stock.
A Niche Opportunity In an interview, Ayro CEO Rod Keller provided some essential insights into his vision for the company. With the novel coronavirus creating specific challenges for college campuses, Ayro’s vehicles can provide timely solutions.
As Keller points out, “There are 1800 universities with 10,000+ students and an average of 400 vehicles on campus that need to curb CO2 emissions.” So, while this is a niche opportunity, it’s still a large addressable market.
Ayro provides food trucks, which should be of interest to universities seeking to reduce or eliminate large cafeteria gatherings. With Ayro’s electric trucks, colleges can offer food to students on the go.
Then there are sports events on college campus, some of which are indoors. Keller explains that Ayro’s vehicles “are zero-emission, so they can even be used indoors to haul things around stadiums like kegs, pallets of water, or maintenance material as well as serving as a form of food truck and/or concession vehicle to bring food/beverage/branded items to patrons where they are located.”
Ideal for Restaurants Furthermore, Keller envisions the Ayro 311, a three-wheel electric delivery vehicle, as being perfect for restaurants that deliver food. In the wake of the coronavirus pandemic, food delivery has become an essential part of many restaurants’ business models.
As you may know, the most well-known food delivery services are often quite expensive to use. Keller calls these services “profit suckers” for restaurants and says that they’re “horrible for a restaurant’s bottom line, so those businesses are seeking lower-cost ways to fulfill delivery on their own.”
That’s where the Ayro 311 comes to the rescue. This little vehicle is ultra-efficient and street-legal. It’s also small and maneuverable. With this unusual-looking vehicle, Ayro just might revolutionize food delivery and save restaurants a whole lot of money in the process.
The Takeaway If you’re willing to share the CEO’s unique vision of the future of electric vehicles, then AYRO stock could be a worthy investment. Just maintain a reasonable position size and prepare for potentially big moves from this low-priced stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
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