Exclusive
Sono Motors failed with its solar car Sion – and now wants to reinvent itself as a supplier. However, auditors express “considerable doubts” about the continued existence of the company.
By Hannah Schwar
The Munich solar car start-up Sono Motors is apparently in even greater financial distress than previously known. “Our auditors have expressed serious doubts about our ability to continue as a going concern,” writes Sono Motors in a recent filing with the US Securities and Exchange Commission. The next audit report is expected to come to the conclusion “that our capital resources at the time of the audit report will not be sufficient to maintain business operations”.
As reasons for the impending insolvency, Sono Motors cites the ongoing losses and the uncertainty regarding further financing rounds. “Therefore, there is a significant risk that we as a company could cease to exist and become insolvent,” the SEC statement said.
Annual accounts are still pending
At the request of our editors, Sono Motors did not want to answer any further questions about the financial situation and referred to the next quarterly report.
The Q4 figures and the annual financial statements for 2022 are due in the next few weeks. The final report by the responsible auditor PricewaterhouseCoopers (PwC) is then due at the latest. On request, the start-up did not want to give a specific date for the presentation of the balance sheet.
Solar business to save company
Sono Motors announced the end of its solar car program Sion in February. The company had not been able to raise enough capital to start serial production. The founders Laurin Hahn and Jona Christians announced that they would concentrate on the development of solar technology in the future and continue as a supplier for other car manufacturers. About 300 jobs should be eliminated in the course of the restructuring.
It remains unclear whether the savings plan is sufficient to save the company from bankruptcy. As of December 31, 2022, Sono Motors said it still had around 29 million euros in cash in the bank. According to its own statements, it currently earns “no significant sales” with the solar division. At the same time, debts are piling up: more than 40 million euros have to be booked just for the reimbursement to the around 20,000 customers who have already advanced a down payment for the failed solar car.
At least 25 million euros are missing
Sono Motors started in 2016 with the ambition to build the first mass-market electric car that could run on the power of the sun. The founders are still clinging to the dream of solar-powered mobility: According to the company, it is currently looking for further sources of financing for the restructuring to become a solar supplier. In order for things to continue at least until the end of the year, additional investments of EUR 25 million are needed.
Source: Stern
