Company Clean motion
Ticker CLEMO
Listing First
Market cap
Share price
ESGFIRE Target price:
Industry Electric last mile delivery
Website https://cleanmotion.se/
*This target price scenario is ESGFIRE's bull case scenario for 2024
full target price scenario for 2025 and 2026 is to be found below.
Executive summary:
In the fast paced and evolving landscape of electric vehicles (EVs),
Company Overview:
Key Milestones recently achieved by
- Type Approval:
Clean Motion have finally passed all tests necessary for the European type approval at IDIADA. This enables the company to commence production and announce delivery dates for European customers. This milestone is pivotal, marking the transition from development to commercialization. The company aims to give current clients updates shortly on delivery dates. With the most critical test passed and the type approval being imminent ESGFIRE believes orders will already now begin to deliver from Clean Motions production facility. Demand seems to be big for EVIG asClean Motion have communicated that they will initially prioritize customers which have a potential future order volume exceeding 100 vehicles as well as distributors in southernEurope . - New Production Facility: The company has inaugurated a new production facility, significantly boosting current manufacturing capacity to 3000 vehicles annually. This expansion is expected to accelerate production and meet growing demand.
- Strategic Partnerships:
Clean Motion have secured a new licensing agreement inIndia , attracting nearly7 million SEK in investment.Clean Motion holds a 42% stake in the Indian subsidiary and expects to earn approximately2 million USD in licensing fees from 2026 to 2030. - Positive Financials: For the first time,
Clean Motion reported a positive operating result before depreciation in Q4 2023. This financial milestone underscores the company's progress towards profitability.
Market Potential:
The global market for last-mile delivery vehicles was valued at approximately
Comparative Analysis:
Tesla : WhileTesla remains a dominant force in the EV market, its primary focus is on passenger vehicles and large-scale energy solutions. In contrast,Clean Motion's niche focus on last-mile delivery addresses a specific and growing need in urban areas.Blue Bird : Known for its electric school buses,Blue Bird operates in a different segment of the EV market.Clean Motion's advantage lies in its innovative design tailored for urban logistics, which differs significantly fromBlue Bird's product line.Mullen Automotive : As an emerging player in the EV space,Mullen Automotive focuses on electric SUVs and commercial vehicles. However,Clean Motion's emphasis on solar-integrated, lightweight vehicles for last-mile delivery offers a unique value proposition that sets it apart.- Paxter: Paxter is the closest competitor which ESGFIRE has found in
Europe . Paxter is made inNorway .Clean Motion's EVIG has a 40 % bigger volume cargo capacity than Paxter (2500 liters vs 1800 liters). The price for Paxter is around 20000 EUR which is in the same price range as EVIG however Paxter does not appear to offer as many extra added practical features as EVIG. Furthermore it should be noted that Paxter's vehicle have no doors and it appears like a 4 wheeled terrain vehicle as you sit on a saddle while riding the vehicle. Also Paxter only has a reach of 60-80 KM in one charge meanwhile EVIG has a range of 150 KM and even further in sunny climates (up to 230 km range).Clean Motion is also developing a 4 wheeled vehicle which likely will have an even larger cargo capacity than EVIG.
Stock price fair value range base and bull scenario according to ESGFIRE*:
Base Bull
2024:
2025:
2026:
*Base scenario factors in a 20 X EBIT valuation and Bull Scenario factors in a 30 X EBIT valuation. Full valuation scenario and assumptions are found below.
Financial projections according to ESGFIRE:
2024
Sales: 58 MSEK
Number of vehicles: 250
EBIT: 14,5 MSEK
2025
Sales: 290 MSEK
Number of vehicles: 1250
EBIT: 72,5 MSEK
2026
Sales: 928 MSEK
Number of vehicles: 4000
EBIT: 232 MSEK
Basis for Financial projections and fair value range:
Please note that ESGFIRE's financial projections does not take into account any sales for Clean Motions first vehicle Zbee which the company recently signed a licensing deal for in
In terms of vehicle sales numbers our projections are based on the company's previous communication, signed distributors agreements as well as an overall market projection on the demand for the company's flag ship product EVIG. It is worth taking note that when signing a project deal with the
ESGFIRE's projections originates from an estimated median sales price range for EVIG of 232
Based on available data a reasonable EBIT multiple for
Base Scenario: 20X reflecting a balance of high growth prospects and inherent risks.
Bull Scenario: 30X reflecting the potential for very high growth and capturing market optimism.
These EBIT multiples are based on the market's confidence in the company's future growth and ability to deliver on its objectives. These EBIT multiple ranges accounts for both the growth potential and the inherent risks of investing in a young company in a competitive sector.
Given the company's current liquidity situation, ESGFIRE has incorporated a projected 10% dilution for an anticipated capital raise into our target price calculations. This capital raise is expected to inject an additional
Risks and Considerations:
While the outlook for
The EV industry has seen numerous small producers with varying degrees of success over recent years. ESGFIRE believes
'
Conclusion:
For investors looking to invest in a rising star in the EV industry that emphasizes sustainability and innovation,
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:
Email: Filip@esgfire.com
Telephone: +46701609605
Legal Disclaimer
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The author holds shares and/or other securities of this company and this may impact the content of this analysis. 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
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