EV motor with powertrain
Saietta has failed to reach commercial terms on a deal to produce steering pumps at its Sunderland facility / Image source: Adobe
  • Manufacturing deal falls through
  • Outer year forecasts negatively impacted
  • Saietta seeks extra funding

Shares in electric drivetrain (eDrive) systems maker Saietta (SED:AIM) hit the skids on Tuesday, crashing 55% lower to 7.5p after the company warned it has failed to reach commercial terms on a deal to produce steering pumps at its Sunderland facility.

As a result, the electric motor technology minnow has decided to sell a redundant production line at the North East of England site for £600,000 and warned outer year forecasts will ‘inevitably be impacted’ by disappointing news which left the shares almost 95% below their 120p July 2021 IPO (initial public offering) price.

Addressing working capital concerns, Saietta explained its positive cash balances will only take it through to the end of next month and the AIM-traded firm is now in active discussions over its funding requirements beyond the end of the fourth quarter.

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For the uninitiated, Saietta is a manufacturer of electric drivetrain systems including its proprietary AFT (axial flux topology) technology, as well as more conventional RFT (radial flux technology) motors.

Its e-drive solutions are highly attractive for OEMs (original equipment manufacturers) as they provide a complete drivetrain and control system.

But in a poorly-received commercial update, loss-making Saietta conceded it has failed to reach commercial agreement on an electrical steering pump contract manufacturing deal.

Whilst the envisaged deal was not for the development of any of Saietta’s own products and would have generated modest margins, it would have made a material contribution to revenues over the medium term.


The embattled company sought to soothe investor sentiment by insisting its 50%-owned India joint venture with partner Padmini VNA remains engaged with an unnamed lead OEM customer regarding the mass production of Saietta’s proprietary AFT and RFT technology.

Meanwhile, Saietta remains in discussions with a separate OEM customer about the potential sale of its RFT eDrive for a 2-wheel vehicle.


Saietta’s CEO David Woolley said ‘the strength of relationship with our lead OEM and the market opportunity for our eDrive solutions remains very compelling. Being unable to agree terms on a contract manufacturing opportunity is no reflection on the quality of the company’s products.’

Woolley explained that selling the redundant production line in Sunderland makes sense for Saietta ‘in comparison to a relatively low margin contract to manufacture a non-core product under license. This route allows Saietta to remain 100% focused on our strategic focus of providing proprietary eDrive solutions to manufacturers of lightweight electric vehicles.’

Whilst Saietta won’t benefit from contract manufacturing revenue from August 2024, this ‘will deliver the significant immediate benefit of pulling forward £600,000 of income and cash into the financial year ending March 2024’, explained Woolley.

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After floating on AIM in the summer of 2021, Saietta’s shares soared to 255p later that year as the hype surrounding EV (electric vehicle)-related stocks reached fever pitch, although they now languish at an all-time low.

Also in the doldrums are Pod Point (PODP), the EV charging play which made its market debut in the summer of 2021, and Proton Motor Power Systems (PPS:AIM), a hydrogen fuel cells and hydrogen fuel cell electric hybrid systems producer whose shares have plunged almost 70% over one year.


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Issue Date: 13 Feb 2024