Renault Group, a major participant in the automotive industry, has chosen to cancel its highly anticipated IPO for the Ampere electric vehicle unit. The rationale given is that “current market conditions are not met” for a successful public offering.
In a news statement, CEO Luca de Meo stated that this move will not jeopardize Renault’s electric car and software strategy, nor will it have a negative financial impact.
Ampere, which incorporates all of Renault’s EV efforts, including factories in northern France and approximately 11,000 employees, is likely to receive more funding until it becomes break-even in 2025. The company’s financial ambitions include over $11 billion in revenue by 2025, break-even in 2025, $27 billion in revenue by 2031, and a minimum operating profit of 10% by 2030.
Renault Group About The Canceled IPO
The canceled IPO, which was originally scheduled for late 2023 but was later delayed to the first half of this year, reflects a broader trend in the electric vehicle market. Electric vehicle-focused startups have had mixed results in the public markets. Polestar, which went public in the United States in 2022, announced the layoff of 450 employees and sought money from investors due to its poor stock price.
Ampere has ambitious plans to produce seven EV vehicles by 2031, including a city car priced around $21,000 to replace the current Renault Twingo. Renault claims that Ampere will be profitable because it can reach price parity with gasoline-powered vehicles faster than other EV producers. This is due to Ampere’s unique combination of startup speed with the enormous experience and scale of a legacy carmaker, which enables a 40% reduction in EV development and production costs.