BERLIN -- German startup Sono Motors has abandoned plans to produce a partly solar-powered car called the Sion and will instead focus on building solar panels for third-party vehicles, the company said in a statement.
Founded in 2016, Sono began trading on the NASDAQ in November last year in a bid to attract early-stage investors after finding itself on the brink of insolvency.
The startup was due to begin production in Finland with supplier Valmet Automotive this year.
Sono launched a campaign in early December to raise 100 million euros ($106 million) by offering potential buyers a 3,000-euro discount on a pre-ordered vehicle, travelling across 13 European cities to rally interest in the model.
The company said at the time that it would focus on its less capital-intensive solar business if the campaign, which was due to run until February 28, was unsuccessful.
"We were compelled to react to the ongoing financial market instability and streamline our business," co-founder and CEO Laurin Hahn said in the statement on Friday.
Chief Operating Officer Thomas Hausch will step down and 300 employees will be laid off, the statement said.
Sono is among a handful of startups that have attempted to build a partly solar-powered vehicle, but none have reached series production so far amid struggles to raise enough funds from investors.
The company will continue to use its patented technology for integrating solar cells into third-party vehicles, for which it currently has 23 customers including Volkswagen's MAN and Scania truck businesses and Mitsubishi, it said.
