Sono Motors: Only IPO can save from bankruptcy

Sono Motors: Only IPO can save from bankruptcy-sono

Sono Motors faces bankruptcy if the Munich start-up’s IPO on the US technology exchange Nasdaq fails. Sono Motors itself makes this clear on page 88 of the 200-page document: Without proceeds from the IPO, which has not yet officially started, “the group would become insolvent this December or shortly thereafter”. When asked by email, the following reply came: “Due to the current quiet period, we cannot comment”.

You want to report after the Quiet Period with an update. Anything but good omens for the Munich company. You feel a little transported back to the time two years ago, when a crowdfunding campaign helped to survive. However, the company has not been out of the woods since then. But tries to develop step by step forward. Assumptions also came from electric car already that things are not going so well.

National Electric Vehicle Sweden (NEVS), the Swedish electric car subsidiary of Evergrande Auto, is looking for new owners and investors. As Sono Motors explained to us, this would have no effect on the Munich start-up’s production plans for the SION solar electric vehicle. Shortly thereafter, NEVS boss Stefan Tilk revealed in an interview with Dagens Nyheter that there was no binding production agreement with the Munich company. As soon as it was announced, this cast a different light on the intended IPO.

Sono Motors could be forced to look for another production partner, the company admits in the prospectus. We are already in talks with two alternative contract manufacturers from Europe. That could mean a new delay of several months in the start of production or even cause everything to fail. But even if this hurdle can be taken, there will still be a lack of funds, as Sono Motors admits.

The plan is to sell up to 11.5 million shares at prices between 14 and 16 dollars per share on the stock exchange. This would result in a maximum issue volume of 184 million dollars. Less fees, the start-up itself calculates a cash inflow of no more than 156 million dollars, i.e. the equivalent of a maximum of 135 million euros. According to the US stock market prospectus, at least 354 million euros would be needed before production could start. These 220 million euros would have to be filled in order to finally get the SION on the road. Sono estimates the losses that have accumulated since the company was founded to be EUR 109 million. Half of this was incurred in the previous year alone.

The cost advantage that Sono Motors had at the beginning is becoming less and less. Because other established manufacturers are also pushing into the market with cheaper e-cars. Therefore, the question is justified as to whether the start-up will only survive for a while or will be forced to give up after all. Because even the almost 41 million euros from pre-orders of the SION are not yet certain.

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9 thoughts on “Sono Motors: Only IPO can save from bankruptcy”

  1. I think it’s a shame that Sono will most likely not survive. The solar cells on the body sides and the moss on the dashboard are really weird gadgets that I won’t really miss now.

    But the promise to make the repair manuals freely accessible and offer favorable spare parts, would be at a time when the manufacturers are increasingly designing the cars so that only “authorized dealers” for expensive money can keep the part running, a real purchase criterion been.

    Maybe I’m just old-fashioned in trying to be an owner when getting a user license is hip..?

  2. A car that charges itself, offers space for the whole family and consumes and costs as much as a small car. Yes, you have to believe that too. But one cannot say that the project was unsuccessful. The pockets of the founders should be full.

  3. I think this was nothing more than a large-scale scam, the two boys will probably soon be lying on the beach somewhere enjoying their wealth.
    Of course it’s just my humble opinion. 😉

  4. From the unfortunate price increase of almost 10.000 euros this project died for me. Allegedly because of the battery costs. Either there were absolute dilettantes at work or on purpose.

  5. Interesting text from the prospectus “Without the IPO, a bankruptcy would be threatened” .
    Who would want to invest there??

    The originally advertised price of 20.000 €, as of mid-2018, was really the best thing about the vehicle. With us in the Netherlands there is no gold-rimmed subsidy of 9.000€, and until Sono can finally deliver (if at all) there are plenty of better alternatives.

    Anyone who still invests in Sono Motors has only themselves to blame!

  6. just took too long. Belief in something moves mountains, just like on the stock market, nothing works here without imagination. And both have disappeared here in recent months. If this really well-intentioned car were launched, it would already be obsolete. The train is out of the hall. Let’s be realistic.

  7. 🙁 I haven’t said it often enough in recent years, I want this car and I have reserved it. Nuuuur, I do not need this nonsensical moss and I will not give the car in a big style. But this development for this possibility has eaten Mios?
    Some of my friends who would also like to reserve the SION think the same way. But this uncertainty as to whether we can continue to at least pull our 750kg trailer discourages thousands of investments. Who would want to afford another car for that? With the size, performance, weight, the trailer load of 1000kg and more would certainly have been possible and more meaningful than Irish Moss.
    But well, the boys wanted it that way…so we’ll probably have to forget our money.
    I only wish that they could get some more out of the solar patents… and at least reimburse the full payers something.
    Too bad, too bad…but that’s the way it is with my head against the wall. i’m just sad.


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