The opportunity to get started? Sono Group NV shares are flying low!

The share price of the Dutch parent company Sono Motors is flying low. After a successful Start in November last year it fell below the issue price within around two weeks. Since then, the paper has been in permanent low flight. Apparently unchecked, and a counter-movement cannot be determined. This is unfortunate, but also offers the opportunity to get started.

Orphaned, empty aisles in the former Saab factory
Sono Motors would like to produce here. Orphaned, empty aisles in the former Saab factory.

A good, sustainable concept

In general, the development is amazing in its clarity. Sono Group NV (SEV) shares are currently testing the $5 barrier. After an issue price of US$15 and a high of over US$47. In general, the case is difficult to explain, regardless of all the open questions. A solar electric family car, at an affordable price and equipped with a relatively small battery, is a particularly good and sustainable concept.

It generally meets all criteria that are officially required for sustainable mobility.

The exchange could muster the imagination it has developed on other electrical projects as well. But it obviously doesn't, and there are reasons for that. The buy recommendations and price targets that the Berenberg Bank publishes as the issuer and apparently the only supporter are of no use either.

Because there are massive uncertainties in the background. The advances in product development openly publicized by Sono Motors make anyone with a rudimentary understanding of the processes in the auto industry doubt the schedule. 2023 is set for the series, but important components have not been finalized. You don't see prototypes that would be used for testing on the streets. Of course, a lot is simulated on the computer today, development processes are shortened, but even in the digital age, the year 2022 only has 12 months.

And one of them may already be deleted from the calendar.

Farewell to Trollhättan?

The biggest uncertainty is the place of production. Sono Motors is said to be exploring an agreement with a provider outside of Sweden. Understandable, because the Evergrande sword hovers over NEVS and Trollhättan. The Chinese owner is busy with the in-house debt crisis and refuses (so far) to let NEVS go or bury his automotive future plans.

How the relationship NEVS - Evergrande will continue is completely open. Even if one agreement about the change of ownership should be in sight. Perhaps management overestimated itself and gambled away its preferred idea of ​​freedom. In case of doubt, it is also the Chinese owner who will have the greater staying power.

A safe manufacturing partner could help Sono Group's stock out of the trough. He could fuel the imagination that is sorely needed. And if that were a farewell to Trollhättan and the old Saab factory, then so be it.

Because, and there lies another problem, at the current stock price it will be difficult if not impossible for Sono Motors to get the necessary financing for production.

Now is the time for gamblers – or for visionaries. It depends on your point of view. If you are daring and willing to accept a total loss, you can buy the Sono Group NV share (IF V) stock up.

6 thoughts on "The opportunity to get started? Sono Group NV shares are flying low!"

  • blank

    I think you should see that fairly, as described in the article. Sono Motors is a pioneer, it depends on your point of view how you want to judge the company. Of course, not everything is going optimally there, after initial interest I said goodbye.

    But the idea should be given a chance, innovations are good, everything is constantly changing.

  • blank

    "It generally meets all the criteria that are officially required for sustainable mobility."

    And this is the reason for the decline of Sono.

    The so-called elites have distanced themselves so far from the everyday reality of the rest of the people that their ideas and demands no longer meet with an echo in the general population and therefore there is no place for Sono either.

    • blank

      "It" is the car, is the Sion...

      I take a similar view as you, but don't blame Sion. Whether it's elitist or rather naïve, I don't know. Maybe it's both?

      In any case, I see the blame for Sono Motors and their communication. I could definitely imagine the Sion as an individual possession that is available to me 24/7 in everyday life. But Sono is harping on the subject of car sharing so much that I don't even feel welcome with my attitude as a customer...

      And from an investor's perspective? Here, too, Sonos' tenor of wanting to be on the road with as few, as small as possible cars with as small a margin as possible is extremely disturbing. What kind of absurd business model is that, wanting to produce and sell as few cars as possible?

      Do they even want buyers, investors and the Sion on the street? One gets the impression that Sono Motors is reluctant to see their own child on the street and only wants to do so if it can't be avoided in favor of public transport, bicycles and pedestrians. Is it elitist? In any case, it is economically absurd and the strategy of communication is a tragedy...

    • blank

      Presumably, the everyday reality of the rest of the people in this country has very little to do with the purchase of shares anyway, especially shares that are only traded on a US stock exchange.
      Those who believed in it bought and now have to hold the shares if they don't want to make a loss immediately.

      Whether that's the demise of Sono Motors, I don't see it set in stone yet. According to their reports, things are progressing, even if not according to the original plans. And when they've needed money, they've always found it. Some of the "so-called elites" do see potential, but they also have money, the question is whether it is enough.
      If they actually make it to production, which admittedly isn't clear yet, that's where it gets really interesting, because then it has to be seen if the market is as big as assumed.

      • blank

        Well said and correct!

        "(...) because then it must be shown whether the market is as big as assumed."

        But this is exactly where my problem with Sono Motors and their communication lies. If the car is good and environmentally friendly, why is it only an alternative to other cars in car sharing?

        Why isn't the Sion good for everyone? Not intended as the ideal everyday car for Hinz and Kunz?

        And what do you mean by “whether the market is that big”? I don't even ask this question. Not against this background...

        I rub my eyes – on the contrary – in astonishment that Sono Motors is strictly limiting the market for the Sion for artificial and ideological reasons. Really strange. Shouldn't the better car be sold to everything and everyone as often and as early as possible in the name of the environment and one's own economic interests?

        But at Sono Motors, you never miss an opportunity to deny exactly that. The Sion is not an offer to the masses, but explicitly designed for car sharing by inner-city loft residents...

        I cannot understand that a "car manufacturer" makes its market and the opportunity for potential investors so small. Too bad about the Sion. I actually like him a lot and see a lot more potential than the creators themselves.
        That's really weird, isn't it?

        • blank

          Well, Sono defined the size of the market itself. If I remember correctly, the talk was of a production volume of 260.000 cars in 6 years. Ergo, a good 40.000 cars per year, not necessarily excessive compared to established OEMs, but first of all it has to be brought to the customers.

          Now one may wonder where these numbers come from. Is that the minimum quantity for a contract manufacturer to give you the box at a price that still makes enough profit for you? Or is it the number of potential customers you've seen, whoever they are?

          When I last checked, they were at almost 17.000 reservations, even if there should be 20.000 by the start of production, that's only half a year's production and only if all of these are real orders. Who buys the other half and who buys the volume for the next 5 years?
          So I don't think they will resist selling it to "normal" car buyers. I see it more as an attempt at branding to reach the intended target group. These are likely to be young first-time buyers, brand-independent car sharing services and probably also car buyers in the "green" environment. Municipal and smaller companies are also conceivable, which may be able to manage their vehicle pools via the sharing services.

          The interesting question is whether the numbers mentioned can be achieved when production starts.

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