German electric automaker e.Go develop three new microfactories in Europe and the US in the following years, Reuters reports, citing the company’s top executive.
Chief Ali Vezvaei disclosed ahead of e.GO’s listing on October 20 that the move is part of its plans to expand low-cost electric vehicle production.
Plan details
The report indicated that e.Go intends to erect a new factory in North Macedonia that will commence operations as early as next year.
The company plans to develop another European factory, but the specific location remains unclear.
Moreover, it aims to build a local factory in the US as it seeks to benefit from the Inflation Reduction Act’s EV tax credits of up to $7,500.
For context, e.Go already operates an EV production plant in its home country, Germany.
e.Go to IPO
eGo usually spends approximately $60 million to develop its microfactories. It is unsurprising, considering that these facilities have an annual production capacity of 30,000 electric vehicles.
kfz-betrieb reported that going public is part of the company’s efforts to raise funds for its planned EV expansion in Europe and the US.
It further indicated that e.Go will complete its IPO via a merger with special purpose acquisition company (SPAC) Athena Consumer Acquisition. It can potentially raise the recently bankrupted automaker to about $900 million. It will also apparently raise $235 million and $50 million in debt financing.
Strategy
e.Go focuses on the low-cost EV market as it wants to deviate from most automakers attempting to overthrow Tesla in the luxury EV segment.
“There is no need for us to try to test the water there. If you look at the urban segment we serve, it’s underserved.”
CEO Ali Vezvaei
For context, e.Go currently offers the small four-seater e.Wave X from the Aachen factory. It has a base price of 24,990 euros ($26,457).
However, the total volume has only reached about 1,200 to date.
The company expects the SPAC merger to offer the necessary working capital to boost production to “thousands and thousands” units.
Athena Chair believes in e.Go’s potential to have a successful IPO.
“This is not yet just another EV company, but a company that actually makes cars. So this is very attractive from an investor’s point of view.”
Athena Chair Isabelle Freidheim
e.Go announced bankruptcy at the start of the COVID-19 pandemic. With the planned IPO, the company would be able to boost capital resources for its EV production expansion.
