The Sono Group NV (NASDAQ: SEV) stock price rallied 20.4%, adding to Friday’s 21.2% rally as investors reacted positively to news of a collaboration between Sono Motors and Bosch. The two firms agreed to collaborate on a network of European car repair shops.
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The markets celebrated the announcement on Thursday after the markets closed, as evidenced by Friday’s and today’s premarket rally higher. The deal will give Sono Motors Sion solar electric vehicle owners access to all participating car repair shops. In addition, the EV owners will have access to car servicing, repairs, maintenance and other services covered by the EVs warranties.
Investors cheered the partnership that boosted the perceived reliability of Sion solar electric vehicles more due to Bosch’s long-term reputation for quality services across Europe. Furthermore, Sion owners will now easily access competent mechanics following the partnership across the Bosch Car Service network.
The deal will see an initial class of 50 Bosch mechanics trained in servicing and repairing the Sion solar electric car, after which they will be assigned to Bosch Car service shops loathed in major and rural towns across Germany. After the German rollout, the program will be expanded to other European countries.
The program will see Sono Motors train the staff selected from the Bosch Car service shops. The chosen mechanic will undergo in-depth training from Sono Motors before being certified to work on Sion cars and redeployed to participating car service shops.
The partnership between Sono Motors is unique, and I wouldn’t be surprised if other EV manufacturers follow a similar path. Instead of struggling EV startups building out their vehicle service centers, given the high costs associated, they can partner with existing car repair shop networks.
Such partnerships would allow the EV manufacturers to leverage an existing network of car repair shops and experienced mechanics to service their EVs while saving significant amounts of money they could have used to set up their networks.
*This is not investment advice.
The Sono Group (SEV) stock price.
The Sono Group stock price rallied 20.43% premarket to trade at $1.65, rising from Friday’s closing price of $1.37.