It’s safe to say that Germany-based Sono Group (NASDAQ:SEV) isn’t your typical electric vehicle manufacturer, and SEV stock isn’t a run-of-the-mill investment. Indeed, it requires a bold, long-term vision to believe in this company and stock.
Not long ago, InvestorPlace contributor Luke Lango asked a crucial question: could Sono Group’s flagship vehicle, the Sion, eliminate the “range anxiety” that some EV drivers experience?
This is a legitimate concern, as a typical EV achieves roughly 250 miles of driving range, while the average gas car can travel up to 400 miles per fill-up.
Maybe the Sion can solve this problem, or maybe not. Either way, there’s something quite special about Sono Group’s EV which could potentially disrupt the industry.
A Closer Look at SEV Stock
On Nov. 17, 2021, Sono Group announced the pricing of its initial public offering of 10 million publicly available common shares at a price of $15 apiece. The shares started trading on the Nasdaq that same day, and the IPO officially closed on Nov. 19.
Lango aptly called Sono Group’s IPO a “blink-and-you-miss-it moment.” I expected to see much more press coverage – and more interest in the stock from investors – yet that’s not how it actually turned out.
Don’t misunderstand – there was the expected post-IPO pop, as SEV stock jumped out of the gate to a peak of $47.49. That rally faded quickly, though, with the stock sinking below $20 and even $15 over the ensuing days.
Believe it or not, the Sono Group share price fell below $13 on the first day of December. It’s usually not a good sign when a stock breaks below its IPO price. On the other hand, maybe there’s a bargain here that Wall Street doesn’t fully appreciate.
So, let’s delve deeper into Sono Group and discover what makes this EV start-up unique.
Patience Will Be Required
Sono, according to the press release accompanying its IPO, is on a mission to “accelerate the revolution of mobility by making every vehicle solar.”
That’s a far-reaching ambition, to say the least. To achieve this goal, Sono developed the aforementioned Sion, which allegedly is the world’s first solar electric vehicle.
Now you know why the company picked the stock ticker symbol SEV: Solar Electric Vehicle.
Over 16,000 reservations have been reported with advance payments for the Sion. These potential Sion drivers will need to be patient, though. Unfortunately, customer deliveries of this EV aren’t expected to begin until the first half of 2023.
The good news, however, is that Sono’s proprietary solar technology may be applicable to a wide range of vehicle architectures. These could include buses, trailers, trucks, camper vans, and even trains and boats.
How Much Range?
That’s all fine and good, but let’s get back to the issue at hand: does the Sion solve the “range anxiety” problem?
The answer is, yes and no.
Sono claims, “The Sion’s solar panels, which are composed of over 248 seamlessly integrated cells, can add 112 km or 70 mi on average (up to 245 km or 152 mi) of additional driving range per week to the car’s battery.”
Additionally, “The Sion’s new [lithium iron phosphate] battery has a capacity of 54 kWh, providing a battery range of up to 305 kilometers or 190 miles.”
That’s pretty good range, no doubt about it. Still, it’s not a perfect solution to EV drivers’ driving-range concerns. Even with its innovative solar panels, the Sion gets less than 300 miles of real-time driving range.
Thus, it still falls short of the 400 miles per tank that a gas-powered car would provide.
The Bottom Line
Clearly, Sion won’t immediately replace traditional gas-powered vehicles. Yet, the idea of a solar-powered vehicle is intriguing, and worth looking into.
Therefore, SEV stock could still have fuel left in the tank. Or more accurately, it might eventually have its day in the sun.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.