Company: Clean motion
List: Spotlight Stock Market
Market cap: 66 million SEK
Share price: 1,06 SEK at time of publication
ESGFIRE average price: 1,4 SEK
Market Size: $24,5 billion by 2023
Industry: Electric last mile delivery
After a series of positive press releases we thought it would be a good timing to summarize the latest achievements for our portfolio company Clean Motion. The pieces are beginning to find their place in the puzzle to expand to 5000 vehicles per year in production capacity . Clean Motion has developed an electric last mile delivery vehicle EVIG that has a solar panel roof for extended range and outstanding performance / price features.
5000 vehicles per year sales capacity would currently amount to a sales capacity of about 750 million SEK or 75 million USD per year.
On December 9th 2022, Clean Motion signed a four-year-long distribution agreement with X-Raam Srl. for the Italian market. The agreement refers to EVIG, Clean Motion’s new electric delivery vehicle. This means that X-Raam is responsible for sales, distribution, and aftermarket in Italy. The distributor’s sales forecast for next year is 200 vehicles, but it only commits to a volume of 50 vehicles. For the entire contract period, 2023-2026, they commit to 650 vehicles. The total order value for this 4 year cooperation alone should indicate around 120 million SEK in order value .
On March 3rd Clean Motion announced that they have signed a production agreement with the highly qualified company namely SVOP (Special Vehicle Operations). SVOP has a long history of special vehicle assmebly for Police and other first responders. They appear to be solid financially with exception for the year 2022 when their contract with the police expired . This was however positive for Clean Motion as it opened up production capacity for cooperating to produce the new last miler delivery vehicle EVIG.
We also feel confident with the following statement from the CEO of Clean motion, Göran Folkesson
“Material procurement for production start is in full swing parallel with the work for European type approval. There are still steps left in the type approval process, but we expect all tests to be completed by April. Start of production will begin in parallel during March.”
It appears things are going as planned although running about 3 months behind schedule. Comparing to large car manufacturers which are more often than not late by over one year in producing new vehicle models its actually a pretty good achievement.
On March 9th Clean Motion announced that they have signed a Lettter of intent with Israels second largest importer / distributor of Cars namely Champion motors for the distribution and sales of EVIG with Champion Motors New Mobility Ltd. in Israel. The process of developing a commercial distribution agreement has begun, and the first test vehicle is soon on its way for evaluation, registration, and marketing.
Some background on Champion Motors: The company is a fully owned company by Allied Group, has been successfully representing the Volkswagen Group in Israel since 1965 as the direct importer and distributor of Volkswagen, Audi, ŠKODA, SEAT and Volkswagen commercial vehicles. Champion Motors holds a key position in the Israeli market as the second-largest car importer and distributor with an active role in the automotive and smart mobility ecosystem. It provides both funding to start-ups
as well as business opportunities through joint ventures with the VW Group such as ŠKODA AUTO DigiLab Israel, XPLORA by SEAT and now New Mobility in Israel.
To conclude , Clean motion is piece by piece truly setting up their production and sales infrastructure in the most impressive way.
We own shares of this company personally.
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