Munich The solar cells extend over the entire car – over the roof, the door, the tailgate and the fender. Sono Motors installed a total of 456 half-cells in the prototype of the Sion. They are intended to give the extraordinary electric car additional energy when parked without having to connect a cable. On average, the sun donates energy for 112 kilometers a week, Sono has calculated. When the sun shines brightly, it can even be 245 kilometers.
“Driven by the sun” – this is how the Munich company advertises the model. That’s not entirely true: Because the five-door model is also charged via a cable that feeds household electricity into an LFP battery. But at least: shorter trips to go shopping or trips by “mini-commuters”, as Sono Motors calls some example customers, are possible with the sun. “Demand is very good,” says founder Laurin Hahn. The annual report shows more than 30,000 pre-orders.
An amazing success. Because the start-up from Munich faced financial failure several times. But with inventiveness, creativity and luck, the founders Hahn, Jona Christians and Navina Pernsteiner, who left in autumn 2020, always managed to find new sources of money. “What they have achieved is unbelievable,” says Karl-Thomas Neumann, former Opel boss and start-up investor, and praises her “perseverance”.
Sono Motors has sometimes taken unusual paths for financing: With several campaigns, Sono Motors recently collected a total of more than 60 million euros in crowdfunding. Only a few blockchain projects and the Star Citizen video game have brought more in this way. “We had no other choice,” says Hahn, “in Germany there is simply hardly any financing for hardware tech companies.”
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After the successful crowdfunding, several venture capitalists invested a further 45 million euros in Sono in 2020. The IPO on the Nasdaq in autumn 2021 brought another 142 million euros into the company’s coffers.
Sono makes high losses – and hardly any sales
However, the losses that Sono is currently making are high. In the first three months of 2022 alone, the loss amounted to 25.5 million euros – with a turnover of 20,000 euros, which was mainly achieved through the licensing of solar technology. According to the quarterly report, Sono currently still has a cash reserve of around 103 million euros.
Sono Motors went public on the US Nasdaq stock exchange in autumn 2021. Because of the corona pandemic, founder Laurin Hahn rang the stock exchange bell in Munich – via video link to New York.
That’s not enough to start production. The Sion was actually supposed to roll off the assembly line by the end of 2019. Since then, Sono Motors has raised the targeted sales price from 16,000 euros to 29,900 euros most recently. The specifications have been adjusted several times for this.
But the situation on the market has also changed because certain components have become more expensive. Sono’s partners include the suppliers Thyssen-Krupp and Bertrand.
The headwind is also noticeable on the stock market: Since the IPO, the share price has fallen by 84 percent to 2.82 euros – from the two billion dollars that Sono was worth when it went public, the valuation has now fallen to 238 million dollars . Investors are apparently wondering whether Sono can hold out until the start of series production at the end of 2023.
According to the company, this requires a further 275 million euros. But the poor stock market situation makes it difficult for Sono to start a real capital increase. In order to raise the necessary financial resources, the start-up is taking unusual approaches to financing.
A so-called “at-the-market program” was recently set up with Berenberg Bank. In the next two years, Sono can therefore bring shares with a total value of up to 150 million dollars to the market.
However, only 20 percent of the average trading volume of the last ten days may be issued, currently only 80,000 shares per day. Sono could come up with more than 200 “mini capital increases” in the coming years. Analysts fear that the share price will continue to depress.
Sion is to be built by Valmet in Sweden
For industry expert Neumann, it is far from certain that the financing for the start of production is secured. “With all respectable successes – that will be a difficult undertaking.”
The car expert speaks from his own experience: Just a few years ago, Neumann had participated in the start-up ACM, which wanted to build an inexpensive electric car, especially for emerging countries. Contract manufacturer Magna was supposed to build it – but then no financiers were found and the company went bankrupt. “It’s a sad thing: You can’t realize ideas like that in Germany,” says Neumann.
Sono tries anyway and focuses on maximum efficiency. The start-up focuses on a model that is only available in one color: black. Actually, the Sion should be built by the Chinese Evergrande group in a former Saab plant in Sweden. The partner got into financial difficulties.
Sono now relies on the Finnish contract manufacturer Valmet. The Finns are already building the Mercedes GLC, among other things. It is currently planned that production will start in the second half of 2023. 43,000 vehicles will then roll off the production line in Uusikaupunki, Finland.
Simple, sparse and green: the electric car from Sono Motors is not very luxurious, the moss strip is more design than an air filter.
By March, according to the company, 17,000 people had pre-ordered the “cheap and sustainable” electric car – and paid an average of 2,310 euros, which Sono has brought in more than 41 million euros so far. If everyone exercises their purchase option, the value of the reservations will be 368 million euros. In addition, there are 15,250 pre-orders from commercial customers, but without a down payment.
Sono sells its solar technology for a license
In addition to just selling cars, Sono also wants to monetize the solar technology used. “Sonos solar integration is lighter, cheaper and more flexible than other offerings,” wrote Berenberg Bank analyst Michael Filatov.
The solar cells are integrated in seven layers into a polymer matrix of the body using an injection molding process. Unlike conventional solar cells, no glass is used, so the panels are highly resilient and unbreakable.
456 half-cells are distributed on Sono’s electric car – and integrated into the body by injection molding.
Sono wants to sell the technology to other companies for a license. So far, the start-up has signed partnerships with 18 companies such as MAN or the Munich transport company. The French refrigerated vehicle specialist Chereau recently announced that it would be equipping its vehicles and trailers with Sono solar technology in the future. The start-up promises that up to 8,475 liters of diesel per year can be saved with each trailer.
Sono founder Hahn is therefore certain: “In five years, solar will be a matter of course in many electric cars,” says the founder. “The idea is too practical, inexpensive and sustainable for that.”
More: Sono solar car is built in Finland.