CompanyClean motion
TickerCLEMO
ListFirst North
Market cap48 million SEK
Share price0.4 SEK at time of publication
Market Size$24,5 billion by 2023
IndustryElectric last mile delivery
Websitehttps://cleanmotion.se/
ESGFIRE comment:
Clean Motion has made significant strides in the third quarter of 2024, despite facing some external challenges in the broader automotive supply chain. The company’s focus on innovation and strategic market positioning continues to set it apart in the electric vehicle (EV) sector.
One of the standout developments in this quarter was Clean Motion’s participation in major industry trade fairs in Amsterdam and Copenhagen. The response to EVIG, their solar-powered light commercial vehicle, was overwhelmingly positive. This aligns well with the increasing demand for sustainable last-mile delivery solutions in urban areas. The strong interest from logistics operators underscores the growing recognition of EVIG’s capabilities to meet market needs for efficient, low-emission transport options.
Production and Scaling Challenges Addressed
The company’s recent updates highlight some delays in scaling production due to component shortages, an issue currently impacting the entire automotive industry. Despite these setbacks, Clean Motion is set to reach a production pace of 20 vehicles per month by Q1 2025. This production ramp-up will be crucial for fulfilling the growing pipeline of orders and maximizing the usage of EVIG units already deployed for testing by prospective clients.
Strategic Partnerships and Market Expansion
Clean Motion’s ongoing discussions with industry giants, including Daimler’s FUSO, reveal a promising path forward for potential large-scale partnerships. These engagements, coupled with the newly secured production certification, demonstrate Clean Motion’s readiness to expand beyond initial pilot projects. The decision to maintain control over a select fleet of EVIG units for demonstration purposes highlights the company’s strategic approach to long-term scalability.
Financial Position
The recent rights issue raised approximately SEK 24.3 million before costs and loan repayments, indicating strong investor confidence. However, after covering related expenses and the repayment of bridge loans, the net proceeds were notably lower. These funds are essential for bolstering Clean Motion’s liquidity and supporting its aggressive growth strategy. Additionally, the exercise of outstanding warrants in 2025 could potentially provide an additional capital boost, further supporting expansion and innovation.
Positive Outlook for 2025
With EVIG already capturing interest from one of Europe’s largest postal operators and plans to scale production in India for the Zbee model, Clean Motion is well-positioned to leverage the increasing global demand for sustainable mobility solutions. The market feedback from recent exhibitions reinforces confidence in EVIG’s value proposition, particularly in cities transitioning to low-emission zones.
ESGFIRE remains optimistic about Clean Motion’s future, especially given the low valuation of SEK 40 million. As part of our commitment to supporting sustainable innovations, ESGFIRE has subscribed to shares in the ongoing rights issue. We believe that Clean Motion’s strategic focus on scalability, combined with its unique solar-powered technology, positions the company as a compelling investment with significant upside potential.
About ESGFIRE
ESGFIRE is an investment company and research firm that focuses on ESG companies with either an environmentally friendly service or product. ESGFIRE has a performance record of over 1000 % returns since 2018.
Contact details
Website: www.esgfire.com
Group CEO: Filip Erhardt
Email: Filip@esgfire.com
Telephone:+46701609605
Legal Disclaimer
This post is based upon reliable sources, namely regulated press releases from the company, as referred to above. Nevertheless, this post may contain interpretations, estimates, or opinions of the authors, or other non-factual information. If that is the case, this is continuously stated above. Furthermore, any projections, forecasts, or similar are explicitly stated as such.
The author holds shares and/or other securities of these companies and the relevant
companies may or may not have paid the author for content posted on this website. This
may impact the content on the website. Because of the above, ESGFIRE urges the visitors to always analyze all the posts critically in an objective manner, e.g., concerning the reliability of the relevant source and of what constitutes the authors’ personal interpretations. The visitor is hereby reminded that the post does, as set forth in the Post, contain interpretations, estimates, or opinions of the authors. This post was written by Filip Erhardt, at ESGFIRE, published at Novembe 14th 2024.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for educational purposes only and are not to be interpreted as tips, financial advice or recommendations of any kind to either buy or sell any stocks.
