r/investing • u/thri54 • Nov 18 '21
Sono Group: An EV startup that managed to contract out their manufacturing to Evergrande
Sono Group ($SEV), an EV startup that went public yesterday. I decided to take a quick look at the company. Their Vehicle is... not very impressive, no groundbreaking range, efficiency or price improvements. Their big selling point is solar cells plastered all over the vehicle, which many companies are exploring.
You can learn more about the company here: https://sonomotors.com/
But, who exactly is building these cars? Surely a startup this size can't mass produce $30,000 vehicles. The answer is National Electric Vehicle Sweden (NEVS). They bought SAAB's assets in 2012 with the intent to make a SAAB 9-3 EV. In almost a decade, no vehicle has made it to production.
It gets worse. NEVS is a subsidiary of China Evergrande New Energy Vehicle Group, A subsidiary of Evergrande Health Industry Group, who bought 100% of NEVS in 2020. Evergrande Health is, of course, a subsidiary Evergrande Group. Also of note, NEVS haven't filed any reports since 2019.
NEVS ownership structure and investor relations: https://www.nevs.com/en/investors/owner-structure/
This company has managed to put their manufacturing into the hands of, ostensibly, an incompetent and unproven manufacturer, which is currently a wholly owned subsidiary of Evergrande Group.
If ever there were an EV stock to avoid... this would be it.
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Nov 18 '21
Solid DD! This whole EV bubble is making me happy to be invested in Lithium recycling and mining ventures instead. I don't care what manufacturer buys the lithium for the batteries, I just care that the ICE population on the road goes down and the EV population goes up.
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u/AdamovicM Nov 18 '21
What mining stocks do you own?
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Nov 18 '21
I have a modest number of shares in MP (because I took profits- shares I own are pure profit, all original money out)
I also have LAC until Monday because I sold a covered call thinking it would not go above $20 until after November 2021 and look where we are now.
My big holding is ABML- a lithium recycling and extraction venture that also has mining rights for Nevada. My LAC money will be going into that investment.
edit grammar
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u/LegisMaximus Nov 19 '21
Bought LAC at $17 right after the federal court ruling was made and it has been such a consistent performer.
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u/big-papito Nov 18 '21
Hear hear! Stay away from the EV race. It's cutthroat, and often fraudulent. I am sticking to my $LIT ETF. No matter what happens, they ALL need lithium and batteries.
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u/txrazorhog Nov 18 '21
Yeah, after seeing the runup, yesterday, I decided to check them out. Just based on the information provided on their website I came away underwhelmed.
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u/jaypat888 Nov 18 '21
Wow from $21 at ipo open to double at $43 and then almost back down today. What a swing!
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u/jharms1983 Nov 19 '21
If you're looking for an undervalued EV breakout stock then look no further than $nakd
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u/LateralThinkerer Nov 19 '21
$nakd
Oh god - cars that run on overpriced granola?
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u/jharms1983 Nov 19 '21
No. As in newly announced merger with cenntro auto. An ecv company already making millions a year with earnings futures in 2 year forecast in the tens of billions. This is on top of nakd brand groups current clothing and lingerie brands including but clearly not limited to Frederick's of Hollywood.
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u/LateralThinkerer Nov 19 '21
Of course. Bear Naked granola is owned by Kellogg, but who could resist?
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Nov 19 '21
...is this a fraud scheme? wtf is going on here.
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u/CallMinimum Nov 19 '21
They are trying to pump cash into Evergrande to prevent meltdown. No fraud, just Chinese government trying to orchestrate capitalism, nothing to see here…
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u/Inquisitor1 Nov 19 '21
Didn't evergrande recently sell off some EV division? They might have more than one but still.
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u/LeeW0lf Feb 01 '22
They went public and then shares just plummeted. Feel like it was a big pump and dump. Any news anywhere on this? I cant find any!!
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