This UK EV stock has just hit the AIM market

Saietta (LSE:SED) makes motors for electric vehicles.. It has ambitious plans for growth but I need more financial information before I buy this EV stock

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Saietta (LSE:SED) stock hit the AIM market today. The electric motor maker targets a market cap of £102m on its first day of trading. But, this EV stock could go a lot higher if it realises its ambitious plans.

EV stock set to motor

Pancake shaped axial flux motors can be mounted on the wheel of an electric vehicle. They are efficient but expensive. Saietta has developed a patent-pending axial flux electric motor that it says can be mass-produced at a low cost.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Saietta’s AFT 140 motor is optimised for mid-power motorbikes and final mile delivery vehicles. Saietta sees the Asian market, in particular India, as the one to crack. Light motorbikes are already ubiquitous on the roads there. And, by 2030, 100m new motorbikes could hit the roads each year, and 40% of them are forecasted to be electric vehicles. These new electric motorbikes are what Saietta wants its motors to run.

A partnership with Padmini, an Indian automotive parts manufacturer, is part of Saietta’s plan to participate in the electrification of India’s motorcycles. It will be a manufacturing and distribution partner in India. The AFT 140 is tuned to operate in high ambient temperatures with heavy payloads over relatively short daily distances. The motor will be low voltage, allowing servicing by individuals untrained in high-voltage repairs. The high torque produced by the motor means no transmission, which reduces the overall price of the bike.

Getting electric motorbikes onto India’s roads requires new infrastructure. Thankfully, that is already on its way. Gogoro, a Taiwanese company, has already announced a partnership with a large two-wheeled vehicle manufacturer to bring its battery swapping refuelling platform to India. Home charging is, of course, an option, but a network of refuelling stations should help speed up electrification. 

Saietta stock price

So, this is the Saietta stock story: it has a design for a potentially disruptive axial flux motor ideally suited to the demands of the light motorbike market in Asia, in particular, India, where it has a partner to help move its motors. There appears to be a growing market for electric motorbikes supported by infrastructure improvements and general trends. The company now wants to scale up production to establish itself as a low-cost manufacturer of electric motors for two-wheeled vehicles.

Now, how do the numbers look? Saietta raised gross proceeds of £37.5m in the run-up to today’s flotation. Part of that will pay for a UK durability testing (to reassure buyers of the motor’s longevity) facility. Most will go towards scaling up the UK based production to 100,000 units per year within three years. It has increased its revenues on limited production from £174,188 to £870,966 from 2020 to 2021. But apart from that, I do not know much.

I have not seen an IPO prospectus from Saietta. It has filed only balance sheets with Companies House. This is not uncommon for a new AIM stock, but it does leave me in the dark. As much as I like Saietta and its plans, I would like some more financial information before buying this EV stock for my Stocks and Shares ISA. In particular, I would want to see some pricing information. I will wait until I see it.

These five shares are not leaving sustainable investors in the dark...

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Tired woman sleeping on London underground
Investing Articles

5 steps to monthly passive income streams of £500

Aiming for regular passive income streams, our writer walks through five key steps he would take.

Read more »

Business people shaking hands
Investing Articles

Director dealings: HSBC, National Grid, Taylor Wimpey

Director dealings can indicate whether a company's doing well. So, here are this week's director dealings from three of the…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

2 lesser-known stocks with 10% dividend yields!

With sky-high inflation, sizeable dividend yields can help my portfolio grow. These two stocks are paying 10% on average.

Read more »

Businessman pulling out wooden brick from toppling stack
Investing Articles

Is the Woodbois share price a bargain – or a value trap?

The Woodbois share price has seen big swings recently. Our writer considers why and explains his response.

Read more »

Electric cars charging in station
Investing Articles

Here’s why NIO stock is my top EV pick!

NIO stock had been one of the worst-performing shares over the last year, but it appears to have bottomed out.…

Read more »

Risk reward ratio / risk management concept
Investing Articles

The JD Wetherspoon share price has fallen 45% — should I load up?

The JD Wetherspoon share price has shed almost half its value in the past year. Should our writer buy another…

Read more »

Light trails from traffic moving down The Mound in central Edinburgh, Scotland during December
Investing Articles

Down 50%, is the Scottish Mortgage share price a bargain in plain sight?

The Scottish Mortgage share price has lost half its value in recent months. Is it now a bargain for our…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

A cheap UK share for the cybersecurity boom!

I'm backing this UK share after its share price collapsed this week. In fact, I've recently added this cybersecurity stock…

Read more »