[Source: Saietta Group]
When operating at the cutting edge of science, its vital such firms bring their ground breaking products to market as fast as possible & within budget.
Not only generating economies of scale & ultimately profitable growth, but also perhaps becoming the industry’s de factor flag-bearer (eg Tesla for EVs) - alongside enabling key early OEM adopters to standardise their platforms (eg cars, trucks, boats & motorbikes) on the technology.
Yesterday Saietta (SED ) - a pioneer in developing highly efficient, light-weight & low cost/maintenance Axial Flux electric motors – took a giant step towards achieving this goal.
Saying that it had accelerated its commercialisation strategy by renting an existing automotive components factory in Sunderland from the local council, buying 4 electric motor production lines for £1.1m from the previous tenant ZF Group and re-employing a proven, skilled 39 person workforce. In turn, preserving valuable jobs in the region.
CEO Wicher Kist adding: "This landmark deal provides us with a pilot production facility >2 years ahead of schedule [previously 2024], and considerably within the originally anticipated budget [of £10m]. The UK is a hot spot for electric power-train innovation”, with Nissan too recently announcing that its Sunderland plant will form the European hub of its EV production.
In addition, the agreement will see Saietta Electric Drive relocate its ‘e-Axle’ brand from China to the site in Rainton Bridge, where it plans to build heavy commercial vehicle drivetrains, 100,000 electric motors pa for Europe (eg for its marine brand ‘Propel’) & importantly showcase the technology.
Indeed SED’s patented AF motors are ideal for powering the world’s 57m motorbikes, tuk-tuks & other 2/3 wheelers (eg India, China, etc) - as they transition to carbon-free, all-electric. As well as being deployed in out-board motorboats (eg Holland), supercars & last mile delivery vehicles (eg EAV). Together an enormous 40m+ unit TAM by 2030.
Sure there are a handful of other AF motor developers (eg Mercedes’ YASA division, REE Automotive, WHYLOT, etc), but I understand none have yet focused on 2/3 wheelers, since their unit costs are substantially higher.
Ok, so how big could #SED become?
Well hypothetically, if it were to win a 5% share (2m units pa) by 2030, then this could represent $60m-$90m of EBITDA. Which if rated on a 15x multiple, might theoretically produce a $900m-$1.35bn valuation: or equivalent to £7-£11/share vs 190p.