[source: Saietta]

What drives great investments? To me, it boils down to 4 key factors: industry tailwinds, strong USPs, significant price/value upside & excellent management. 

So what about #SED? A pioneering EV firm that raised £37.5m at 120p in July – in order to commercialise its highly efficient, light-weight & low cost/maintenance Axial Flux electric motors. 

Well in Italy’s Apennine Mountains ‘Saietta’ means ‘thunderbolt’, & you can certainly see why. Today CEO Wicher Kist said the “level of interest in our technology [is] remarkable” & there has been “considerable progress…on all fronts” since IPO. 

Not least:

  1. Signing a new exclusive contract with Oxford based Electric Assisted Vehicles to provide in-wheel motors for a forthcoming Inner-City EV to replace standard transit vans (see photo).
  2. In-water testing of a prototype e-outboard motor, whilst equally developing an in-board version in line with Europe’s zero pollution goals for inland waterways.
  3. Extending its IPR licensing tender in China after receiving a much higher level of interest than originally anticipated.
  4. Finalising legal documents with Padmini VNA Mechatronics Pvt. Ltd. (a large auto-parts producer) to setup an Indian JV.
  5. Developing a new 800V motor for the high-performance car sector (mid 2022 launch).
  6. Establishing internal production, R&D/IPR & testing capability with associated recruitment.

Hence putting all this together, CEO Wicher Kist reckons “he can’t see a ceiling” to how big Saietta Electric Drive MIGHT ultimately become?

Indeed I estimate if hypothetically #SED were to win a 5% share of the mobility market by 2030, then this could deliver c. $90m of EBITDA. Equating to >£10/share vs 200p today - assuming a 15x multiple. 1st commercial sales are pencilled in for 2022.