When we first reported on Southern California-based electric bike and motorcycle company SONDORS, which was preparing for an IPO late last year, the company expected the offering to hit a price point of $10 per share. But that number has since been revised down to an estimate of $4-6 per share.
And this isn’t the first time SONDORS has lowered its IPO price estimate. It has already been lowered once from the original $10 to a new target of $6-8.
The move comes as SONDORS could become the first electric bike company to go public in the US. However, the company is now much more than just an e-bike manufacturer.
First there was the three-wheel electric car concept, which was envisioned years ago, although it hasn’t really materialized yet.
Then there was the two-year launch of the Metacycle, a lightweight electric motorcycle that, after a bumpy launch, is now shipping in ever-increasing numbers.
SONDOR’s own story has been a bit of a rollercoaster ride in itself, having burst onto the scene in 2015 with an incredibly affordable e-bike. The $500 electric bike shocked many in the industry. The eventual successful delivery set the stage for what would become a hallmark of SONDORS: big announcements dismissed by many as unlikely to succeed, only to be delivered normally – even if they are a day late and some a dollar behind of the loftier original promises remain.
SONDORS e-bikes have come a long way in the last seven years
SONDORS’ initial listing ahead of the company’s expected IPO has given us our best look yet at the electric vehicle company’s finances.
It’s been a rough year or more for many electric bike companies, which have seen major sales booms during the pandemic that’s been waning in recent months.
In the case of SONDORS, the company reported nearly $17 million in revenue for the first three quarters of 2022, but its high operating expenses resulted in a net loss of over $4 million during that period.
In the same period a year earlier, it posted revenue of $11.2 million and a net loss of $1.78 million.
SONDORS has invested heavily in the development and production of its Metacycle electric motorcycle, with a significant number of pre-orders weighing on the company’s liability pillar.
The company has also made several key hires in recent months, including taking on top executives from companies like Tesla, to correct its course toward profitability.
The forthcoming IPO is seen as key to the company’s ability to maintain sufficient cash headroom to meet its ongoing commitments and capitalize on increasing adoption of its lightweight electric motorcycle while continuing to produce its wide range of electric bicycle models.
Electrek’s take
SONDORS may be in a tough spot here, looking for enough cash to comfortably keep its head above water.
The increasing rate at which these pre-order liabilities are being converted into assets certainly helps, but we don’t have a more recent view of the company’s financials than Q3 2022. Deliveries of the SONDORS Metacycle really picked up in Q4 2022, so would we’re likely to see major improvements there, if any.
This is also where any changes from a new management team will likely play out, so it’s difficult to read too far into it without having a clearer picture of what’s going on behind the scenes.
Suffice it to say, however, that 2023 will likely be a make-or-break year for SONDORS. Here we hope for the former!
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