Sono Motors, a German electric car manufacturer, is reportedly facing financial difficulties and is at risk of insolvency. According to a filing with the US Securities and Exchange Commission (SEC), the company’s auditors have expressed “significant doubts” about its ability to continue as a going concern. The company has been struggling to secure funding to continue operations after the demise of its Sion solar electric car project.
In a recent announcement, Sono Motors stated that it will focus on its solar business for B2B customers rather than pursuing its capital-intensive solar car project. However, the company acknowledges that it will be a while before the solar business generates significant profits. It is still in the early development phase and has not yet entered into a binding commercial contract. The company expects further losses in the foreseeable future, which could potentially make it insolvent.
Sono Motors is also facing risks related to its operations, such as the possibility that developments in battery technology could render solar technology obsolete. In addition, an increase in renewable energy in the grid could make battery electric vehicles (BEVs) more efficient and fossil-free, which could negatively impact customer demand for solar range extenders.
The final audit report from Pricewaterhouse Coopers auditors is expected to be published in the coming weeks. Sono Motors has not disclosed an exact date for the presentation of the financial statements. However, the company’s future remains uncertain, and it is at risk of insolvency if it fails to secure additional funding or generate significant profits from its solar business for B2B customers
