Aptera Secures Manufacturing Partner for Solar Car in Shanghai
Aptera has partnered with Shanghai's Launch Design on a manufacturing program worth up to $44 million, covering tooling, testing, and pilot production. Aptera will pay two-thirds of the costs, while its latest filing reveals $10.1 million in cash and substantial doubts about its ability to continue as a going concern.
Aptera has finally found someone to build its solar car. The California-based company has signed a deal with Shanghai Launch Automotive Technology, a design-for-manufacturing firm with over 3,000 staff, for a program valued up to $44 million.
The arrangement involves Aptera paying two-thirds of approved program costs, totaling approximately $15 million, in the form of warrants to buy Aptera stock rather than cash. This comes despite Aptera's recent going concern warning and limited cash reserves of $10.1 million as of June.
The program provides assembly fixtures, tooling, vehicle testing, and pilot production, along with a supplier network for finished subassemblies. Final assembly is planned for California, although the location for pilot production is less clear.
Aptera has a substantial order book of about 49,300 reservations and an EPA-certified launch edition, but has yet to deliver a car to a customer. This partnership aims to address industrialization challenges Aptera has faced, as seen with Lightyear and Sono Motors' failed attempts at mass production.
The first 40 production vehicles are scheduled for the fourth quarter, but the funds to reach a production capacity of 20,000 vehicles annually are not currently available.
By Darius Popa
Technology enthusiast and intern at The Next Web, contributing to research-backed content and investigating new technologies and global events. Interested in business and narrative shaping in technology.