German EV startup Sono Motors files for U.S. IPO, seeking valuation of over $1 billion
Sono Motors, a Munich-based EV startup that is aiming to produce an all-electric hatchback with solar cells integrated into its body, has announced the filing of its initial public offering (IPO) in the US market to cash in on investor demand and raise funds for production of its futuristic solar powered EV.
The U.S. IPO documents filed by the German EV startup explain that the all-electric hatchback will run on solar power that it would draw from solar cells integrated into its body. Aptly dubbed the Sono Sion, the solar-powered EV would reportedly have claimed range of up to 305 kilometers (roughly 190 miles).
Although the Sono Sion can’t be described as a cool EV, yet it garnered profound interest from early investors as well as potential customers, thanks to its great technical specs as well as its affordable price tag. The startup has indicated that the Sono Sion would cost just around €25,500 (US$29,500). As most of the existing EVs normally start with a price tag of $35,000 to $40,000, the Sono Sion would be more pocket friendly. Moreover, it would not entirely depend on power grids to replenish its battery pack. It would be charged by the sun as well as traditional power outlets.
Demand for the solar-powered EV has been strong, as well, as the startup’s newly filed IPO documents revealed that the company has received nearly 14,000 reservation orders from potential buyers. The figure of reservations represents net sales volume of around €300 million ($349 million). In other words, the startup has generated €38.8 million ($45.2 million) in revenue from amounts deposited by potential buyers. However, the startup decided to launch an IPO to collect more funds as the deposits made by reservation holders will not be sufficient to put the Sion into production.
With the filing of the IPO documents, the startup also revealed that it aims to start producing the Sono Sion in the first half of 2023. With its ability to draw power from the sun as well as traditional power outlets, it would undoubtedly be one of the most affordable options amidst the increasing number of upcoming EVs.
Through the IPO, Sono Motors is reportedly seeking a market valuation of more than $1 billion. For reference, American EV startup Rivian is also aspiring to go public, seeking a valuation of around $80 billion.