After Lucid Motors and Rivian, another EV maker has entered the initial public offering (IPO) race. The Germany-based EV maker, Sono Group N.V. (NASDAQ: SEV) which is “Driven by the Sun” aims to harness solar energy in EV making. It made its stock market debut on November 17, 2021. Since then, its stocks have soared manifold.
Stock Market Performance
Its shares were initially offered at the price of $15 on Nasdaq. However, the market’s opening price was $20.06. During the market hours yesterday, the stock prices soared to $38.74. Moreover, it indicated a huge increase of 158.26% on its first day of offering itself.
However, during the market hours the stock prices came down slightly. The stock was then valued at $38.20. Thus, indicating an overall increase of 154.67%. It reached a market capitalization of more than 2.7 billion. The company had sold 10 million shares of $15 each. The expected price range was set at $14 to $16. However, it soared more than double of the expected price range.
Sono Group’s Competitors
Its competitors, Lucid, Rivian, and Tesla- its biggest rival, have been performing well at the stock market. However, investors can look up to Sono Group’s stock too, considering its growth rate.
However, it is still far behind its rivals. Lucid’s valuation surpassed that of Ford recently, when it exceeded the 89.9% billion mark on November 16, 2021. Additionally, analysts estimate it to be the next ‘Tesla’. Further, Amazon-backed Rivian’s valuation surpassed that of Volkswagen when it surpassed the $143 billion mark on November 15, 2021, with practically no sales.
The first day achievement of Sono Group’s stocks is commendable. However, it still has a long way to go before it can actually outperform its rivals.
The company has started allotting pre-reservations for its new model- Sion. The description mentions that, “248 solar cells seamlessly integrated into the body of the car can add 112 km, on average (up to 245 km) per week, of driving range to the car’s battery, through the power of the sun. This creates full self-sufficiency on short distances.” Also, one more advantage is that it can charge upto 80% in just 35 minutes if connect to a fast charging point.
It will be intriguing and interesting to see how many orders they receive for it. Also how its stocks fare at the market.