In 2023 it should actually be ready and the first Sion in Finland from the assembly line to the streets. However, that doesn't seem to be the case at the moment: Sono Motors has launched the #saveSion campaign, which – as the name suggests – is all about 'saving' the Sion. In a statement about the campaign, the two Sono Motors founders explain Jona Christians and Laurin Hahnwhy this rescue is needed:
"Sono Motors achieved important operational and commercial milestones throughout the year. These include promising new partnerships in our solar business and the launch of our Sion series validation vehicles. At the same time, financial markets experienced a downturn, and many technology companies lost up to 90 percent of their market capitalization. Mobility providers' share prices were particularly hard hit. As a result, financing our Sion program through equity capitalization has become increasingly difficult, leading to dilution. Raising the necessary capital is taking much longer than expected."
3,500 reservations in 50 days
Many investors also advised them to focus on the less capital-intensive B2B solar business and abandon the Sion program. A corporate restructuring would also impact the workforce; 70 percent of employees would have to be laid off, according to the company. Since Sono Motors for the Sion already exceeds 20,000 reservations available, the company now wants to let its community decide whether to continue with the Sion program:
"We are now launching a Sion reservation campaign for 3,500 Sions, which we call #saveSion, and which will last 50 days. Initially, reservists will receive a discount of up to €3,000 off the final price of their Sion. These deposits are only due if the campaign is successful. In addition, campaign supporters will receive a permanent waiting list number for their Sion."
If the campaign goal is reached, 3,500 fully paid Sion reservations would, from the founders' perspective, demonstrate that the community wants to see the Sion on the road. Without the €3,000 discount offered at the start of the campaign, the Sion can be purchased at the list price of just under €30,000. Originally, the Sion for just under 25,000 to be available.
The future of Sono Motors is not at stake
Sono Motors is familiar with a 'rescue in 50 days': At the beginning of 2020, the company was able to save 50 million euros in 50 days in a Community funding campaign Financial difficulties remained even after that, a IPO on the American technology exchange Nasdaq was intended to give the company breathing room in 2021. In their statement, the two founders explain why the financial bottleneck has now arisen again:
"Since we have received hardly any government funding, we must continue to focus on our community and the capital markets. Since 2016, we have raised over €400 million net in financed and committed capital, an incredible sum by German standards. But only a sobering 0.25 percent of that came from the government. And to put that into perspective: It took us only five years from the initial concept to preparation for pre-production. A timeframe that even established OEMs often require to develop a new model. However, developing a car typically costs up to €1 billion. We've come this far with less than half that amount."
Finally, Jona Christians and Laurin Hahn emphasized that the #saveSion campaign is not about the future of Sono Motors, but 'only' about the future of the Sion:
"Should we not be able to successfully complete the campaign, we plan to focus on our attractive B2B solar business, which is significantly less capital-intensive. We believe that, thanks to our current and expected liquidity of approximately €55 million, as well as other available resources, we would be able to successfully refocus the company purely on the solar business."
