[Special Stock] EdisonEV, Ssangyong Motor's First Electric Vehicle Sold Out... Funding Support as Planned

[Asia Economy Reporter Hyungsoo Park] EdisonEV is showing strong performance. The anticipation surrounding the compact electric sports utility vehicle (SUV) 'Korando e-Motion' launched by SsangYong Motor, which EdisonEV is in the process of acquiring, appears to be influencing the stock price.

As of 9:52 AM on the 4th, EdisonEV is trading at 27,400 KRW, up 9.38% from the previous day.

Edison Motors provided SsangYong Motor with 15 billion KRW in operating funds. EdisonEV, an affiliate of Edison Motors, announced on the 3rd, "We are lending 15 billion KRW in operating funds to SsangYong Motor," adding, "This is in accordance with the investment contract signed between the Edison Motors consortium, which we participate in, and SsangYong Motor on the 10th of last month."

The Edison Motors consortium had previously signed an investment contract with SsangYong Motor to provide an additional 50 billion KRW in operating funds separate from the acquisition price. EdisonEV plans to first provide 15 billion KRW and then support an additional 35 billion KRW later.

Currently, Edison Motors and SsangYong Motor are in conflict over the appointment of joint administrators. Edison Motors has requested the court to appoint its executive as a third-party administrator, but SsangYong Motor’s labor-management and trade creditors believe that appointing an additional administrator is unnecessary.

Meanwhile, EdisonEV announced that its consolidated financial statements showed an operating profit of 596 million KRW last year, marking a return to profitability. In 2020, it recorded an operating loss of 6.648 billion KRW. Last year’s sales increased by 140.7% year-on-year to 32.537 billion KRW.

The ‘Korando e-Motion’ has forecasted success by achieving over 3,500 pre-orders?exceeding the initial supply volume?within three weeks of pre-contracts. SsangYong Motor will launch Korea’s first compact electric SUV, the Korando e-Motion, on the 4th and begin official contracts. SsangYong Motor started accepting pre-orders for the Korando e-Motion on the 10th of last month, and due to contracts exceeding the initial supply volume, it plans to expand supply in consultation with battery suppliers LG Electronics and LG Energy Solution, as well as semiconductor companies. Vehicle delivery will proceed sequentially after electric vehicle subsidies are confirmed in March.

This content was produced with the assistance of AI translation services.