Published on 29 May 2023 on Simply Wall St. via Yahoo Finance

When Will Sono Group N.V. (NASDAQ:SEV) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Sono Group N.V.'s (NASDAQ:SEV) future prospects. Sono Motors N.V. operates as a solar mobility solutions provider. The US$15m market-cap company announced a latest loss of €64m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Sono Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Sono Group

Sono Group is bordering on breakeven, according to the 2 American Auto Components analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €31m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 51% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.