Sono Group (SEV) Stock Price and Forecast: Tumbles over 20% to settle below $30
- Sono Group tumbles after an impressive debut on Wednesday.
- The EV sector is surging right now after Rivian's IPO.
- Rivian finally has its first down day on Wednesday.
Update, November 19: After surging 140% on its first trading day on Wednesday, German electric vehicle (EV) maker Sono Group failed to sustain the bullish momentum and plunged 23.32% on Thursday. The EV stock settled the day at $29.29, having tested the $28 mark. The positive performance in the Nasdaq Composite Index (NASDAQ) failed to offer little respite to the SEV stock price. Amongst the latest news concerning the EV space, industry leader, Tesla Inc. said Friday that it raised the price for some China-made Model 3 vehicles in China by CNY15,000.
The electric vehicle (EV) space has taken over the limelight lately with Tesla (TSLA) first breaking the $1 trillion barrier before Elon Musk slowed that charge. Then last week we had the successful IPO of Rivian (RIVN), which has since seen its share price more than double in the space of a week. This Wednesday sees a smaller EV company IPO, that of Sono Group (SEV). Sono listed yesterday on the Nasdaq. Another Wednesday, another hot EV IPO.
Sono Group (SEV) stock news
While a smaller company than Rivian with a market cap of $2.6 billion, it also saw huge interest and performance with Sono Group shares closing up over double the IPO price. Sono Group IPO'd at $15, and SEV shares closed at $38.20 on Wednesday.
The company is another in the hot electric vehicle space. It differentiates itself slightly from other EV makers as it incorporates solar panels into its vehicles to extend the range. Developing a fully solar-powered vehicle has been tried and done but not yet in a roadworthy condition. It is hugely complex and makes passing regulatory requirements very unlikely.
Solar panels are large and heavy, meaning a fully solar-powered vehicle that complies with all road safety laws means the weight of the vehicle would likely be too much. Sono Group (SEV) uses solar panels as an addition to extend the range of its electric vehicle.
Sono Group (SEV) stock forecast
There is no chart history to identify key levels or momentum here. This is just pure momentum as the sector is so hot right now. However, we do take note of the fact that RIVN had its first down day on Wednesday since its IPO. Rivian fell 15%.
At some stage, the same will happen to Sono Group (SEV), but if it follows a similar path to Rivian then it will stretch for another few days yet. Just be careful – this is high speculation trading not investing. Nothing wrong with that, just manage risk and ride the momentum.
SEV 15-minute chart
Previous updates
Update: SEV was down 23.32% falling from a high of $47.49 to a low of $28.00 on Thursday. The price collapsed in a waterfall sell-off and penetrated $36.33 support in a strong 5-min bearish impulse that left the stock on its knees and drifting lower throughout the Wall Street session.
At this juncture, there are prospects of a correction back into the bearish 15-min 10 SMA where bulls will be keen on targeting the $30.00 handle where price could find some stability again. Failing that, the bears will be looking to pile in below the $27.00 support for a run back to test $20.00 the figure.
Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
