Company: Clean motion
Ticker: $CLEMO
List: Spotlight Stock Market
Market cap: 63,4 million SEK
Share price: 1,06 SEK at time of publication
ESGFIRE average price: 1,038 SEK
Market Size: $24,5 billion by 2023
Industry: Electric last mile delivery
Website: https://cleanmotion.se/
ESGFIRE Update from Clean Motion General Assembly
This is a general update from our participation at Clean Motions general assembly which took place today at 29th of May , 18.00 in Lerum Sweden. Our report begins with our notes from the CEO’s presentation followed by our questions .
Statements from presentation by CEO Göran Folkesson
Focus for the company during 2022 was product development and the CEO Göran Folkesson stated he thinks that the last mile deliver vehicle EVIG should be able to run with a range of 100 kilometers on a sunny day in southern Europe thanks to its solar panel roof. The company has tried to focus on early adopter clients and distributors. There are now several distributors in Europe and also one in Israel.
The partnership with SVOP in Trollhättan will allow for Clean Motion to accelerate growth without having to invest money in production infrastructure short term. The current capacity of SVOP should be able to cover approximately 1000 vehicles per year. In the long term there are excellent expansion options for in house production by Clean Motion in Trollhättan.
During 2023 the company has focused on getting type approval (Typgodkännande) for its latest product EVIG. Receiving this approval will allow for sales in the entire European Union. The approval process is being conducted by IDIADA in Barcelona, standing for the Catalan initials of Institut d’Investigació Aplicada de l’Automòbil (Institute for Applied Automotive Research) at the Polytechnic University of Catalonia. The goal of Clean Motion remains to have the type approval done by Q2 meaning end of June 2023.
The project NEOM in Saudi Arabia was also briefly discussed. The initial budget for Clean Motions products are 20 million SEK but there is substantially larger potential if the client is satisfied with the vehicles. The total budget of the NEOM initiative is 500 Billion USD.
Discussions are ongoing with new distributors in southern Europe. Italy and XRAAM is likely to become the most important player short term.
Clean motion have started constructing vehicles and the CEO believes sales will start to materialize in the books already in Q2 of 2023.
Zbee is not totally decomissioned , it may find potential in growth markets . Zbee is highly labor intensive (60 hours) compared to the EVIG (10 hours) and is therefore more suitable for low cost labor country production.
Questions asked by ESGFIRE to CEO Göran Folkesson:
1. The company originally publicly stated that the type approval process would be done by April of 2023 and now the official plan is at latest end of June 2023. what has caused the delay?
Reply:
Supplies was delivered late, problems with components. There were also internal delays at IDIADA which were out of our control.
2. Are there more distributors coming on in Italy?
Reply:
XRAAM has got the exclusive license to Italy.
3. Does the company plan on putting more focus on marketing towards investors?
Reply:
Yes there has not been an official plan for this before but we definately see the need for more coverage.
4. Is Svop ready for mass production?
Reply:
They are definately an interim option , they can help us with up to 1000 vehicles per year after that we need to grow our own facilities. The biggest challenge with expanding our own production is having capital tied up in components. Having longer payment times to suppliers helps a bit on the way.
5. Any further development with Champion Motors in Israel?
Reply:
The initative is with Champion Motors. Selling our vehiclen in Israel does not require an EU type approval but it would certainly help. We hope to hear more within the next month.
6. How certain are you to reach your ambitious sales goals?
Reply:
We see a clear need in the market for our products. Its hard to assess what our distributors can deliver but we feel confident.
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