Sono Motors (NASDAQ:SEV) stock is falling hard on Friday after the company revealed plans to terminate its solar electric vehicle (EV) program.
According to a news release from the company, Sono is completely abandoning its Sion program focused on developing a solar-powered EV. Instead, the company will focus its business on its solar B2B customers.
Sono Motors notes that it already has 23 B2B customers making use of its solar panels in their vehicles. The company will continue to support these customers with its focus on reducing emissions by generating solar power for EVs.
With this change, Sono Motors is restructuring to better focus on a capital-light business model. The company points out that 90% of its estimated funding needs for 2023 were connected to its Sion program.
What Happens to Sion?
Rather than just leave it to rust, Sono Motors says it intends to sell the Sion program. The company doesn’t have a buyer for the program lined up yet but says it’s accepting bids if parties are interested in the technology and IP.
SEV stock investors aren’t reacting well to today’s news with heavy trading sending shares lower. As of this writing, more than 3 million shares have changed hands. That’s already above its daily average trading volume of about 1.3 million shares. This has SEV stock down 27.4% as of Friday morning.
There’s even more stock market news traders will want to know about below!
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On the date of publication, William White 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.