Sono Group (NASDAQ:SEV) reported financial results for the year ended Dec. 31, 2021, and shares of SEV stock are flying higher by more than 70% as a result. Sono operates as a solar electric vehicle (EV) manufacturer. The company also commercializes its technology for other vehicle manufacturers.
For 2021, Sono reported its first revenue, generating $17,250. There is no doubt that the revenue figure is minuscule. The average American worker earns almost triple that every year. However, there are several other factors in the report that are driving up the price of SEV stock today.
Why Is SEV Stock Up Today?
Notably, Sono reported that it had amassed over 17,000 reservations for its Sion solar EV as of March 31. That would equate to a sales value of $397 million if all orders are met. Meanwhile, the company currently has a market capitalization of $540 million.
In addition, Sion has partnered with Valmet Automotive to manufacture the Sion. Valmet has produced vehicles for customers like Mercedes-Benz (OTCMKTS:DLMRY) and Porsche (OTCMKTS:POAHY) and will build the Sion at its plant in Finland. The plant will provide Sono the capacity to produce 257,000 vehicles over a seven-year period. Sono CEO Laurin Hahn added that:
“This year we also have a clear focus on enhancing the quality, testing, and speed of the Sion program. We are now well into the series-validation phase and progressing with vehicle testing and certification. Our collaborative working with our new contract manufacturer positions us well to keep our promise and deliver a climate-neutral Sion to our customers next year.”
At the start of 2021, Sono only had two solar integration business-to-business (B2B) partners. By March 31 of this year, the company had increased its solar integration B2B partners to 17. With more partners, Sono will be able to showcase its technology and grow revenues.
On the other hand, Sono is still unprofitable. The company reported a 2021 net loss of $68.9 million, which increased from a loss of $60.4 million during 2020.
What’s Next for Sono Group?
For the future, Sono plans on establishing its B2B solar integration business as a “strategic pillar, equal to our solar electric vehicle.” The company has already equipped several public transportation buses for Munich’s public transport provider with its proprietary solar technology. On top of that, Sono is currently working on retrofitting boats and refrigeration trucks with solar power capabilities.
Furthermore, the Sion’s user interface and user experience design (UI/UX) have been steadily improving. The interface has incorporated payment processes and insurance booking as applicable features.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.