Sono Motors, a part of the Munich-headquartered Sono Group (SEV), is aiming to make every vehicle solar. Its solar technology can be integrated into vehicles of all types to make mobility climate-friendly. Its first solar electric vehicle (SEV), the Sion, is under development and has already garnered over 17,000 reservations.
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Today, the company announced it is entering the refrigerated trailer market and has signed a purchase contract with the Reefer Group. This brings the number of partners for Sono’s solar business unit to over 17.
Under the collaboration, Sono will build the first trailer vehicle with CHEREAU S.A.S. (Subsidiary of Reefer). The solar integration is expected to deliver fuel savings of around 3,400 liters and reduce CO2 emissions by nine tons per year per vehicle.
Management Weighs In
Laurin Hahn, Co-Founder and CEO of Sono Motors, commented, “This partnership is a huge step for Sono Motors, since we open up a completely new industry for our highly flexible and proprietary Sono Solar technology.”
Damien Destremau, the CEO of the Reefer Group and CHEREAU, added, ”The solar integration solutions provided by Sono Motors are the perfect fit for our trailers. We are pleased to be able to work with Sono Motors to create the future prototype that will be part of our demo fleet of sustainable reefer trailers.”
Sono will equip the roof and sides of a CHEREAU trailer with 54 solar modules, using the vehicle applied photovoltaic process (VaPV) and solar power, which will be used to operate the cooling unit by charging the battery. The solar trailer is expected to premiere at the IAA Transportation 2022 in Hanover.
Analyst’s Take
B. Riley Financial analyst Christopher Souther has initiated coverage on the stock with a Buy rating and a price target of $8.
Overall, the Street has a Strong Buy Consensus rating on Sono based on three unanimous Buys. The average Sono price target of $11.67 implies a massive potential upside of 265.83%. That’s after a 69.6% slide in share prices so far in 2022.
Closing Note
At a time when the world is focusing on electric mobility and reducing emissions, Sono is filling up a major market need. The expected triple-digit upside in the stock, a prototype under development with 17,000 bookings, and multiple business partnerships are the key positives for the stock.
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