Aptera Partners with Shanghai Launch Automotive Technology for Solar Car Manufacturing
Aptera has finally found someone to build its solar car, and it's in Shanghai. The California company has signed a manufacturing program with Shanghai Launch Automotive Technology, valued 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 significant doubts about its ability to continue as a going concern.
The deal:
- Aptera pays two-thirds (approximately $15 million) of the program costs itself, with Launch receiving the remaining share through warrants to buy Aptera stock instead of cash.
- Launch provides assembly fixtures, tooling, vehicle testing, and pilot production, plus a supplier network for finished subassemblies.
- Final assembly is planned for California, though the announcement leaves the location of pilot production somewhat vague.
The challenges:
- Aptera faces substantial financial strain, with only $10.1 million in cash as of late June, burning through $2.0-$2.2 million per month.
- They project $40-$45 million for low-volume production and another $140-$160 million to reach 20,000 vehicles annually, but currently lack the funds.
Lessons from past attempts:
Europe has witnessed similar stories of solar car startups struggling with industrialization: Lightyear halted production and collapsed, while Sono Motors abandoned its Sion. Aptera is renting expertise from China rather than relying on its own resources alone.
The first 40 production vehicles are slated for the fourth quarter, but securing the necessary funds to reach mass production remains a significant hurdle.
By Darius Popa, Technology enthusiast and intern at The Next Web