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Aptera Corp funding status
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Aptera Corp funding status
updated 2 weeks, 2 days ago
61 Members
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122
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The sooner they make even one delivery the better, if they can make a couple hand built cars and deliver them the publicity will draw more investors and would be worth it for the company overall. The only potential drawback could be delays to crash testing or huge number of recalls for the early delivery recipients.
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Crash testing is still technically unofficial and not required so that shouldn’t be a blocker. Only reason to do any more hand built is just to get them into the world for the PR and hopefully see a spike in investment. Tough to know if the effort for this would be worthwhile.
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Anyone investigated a financial hook-up with Tata India? [They are the largest car maker in India; they are used to 3 wheel transports; India has a big pollution problem; the vehicle is more affordable than other EVs.] Might be the partner Aptera needs.
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They don’t want to give up control, they did that the first time around and it was catastrophe. A company like Tata would want to own the whole company. If I had to hazard a guess as to why they haven’t been able to close a funding deal I’d bet it has to do with how much control they are willing to give up.
One more thing about Tata, they bought JLR and I’m sure they regret it. Jaguar barely exists anymore, they are asking their dealers to give up their dealerships. Land Rover doing a little better but it’s been shrinking also.
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The other big mover in Indian transport is Mahindra. They have a presence in North America with their tractors. Some years ago they tried to enter the U.S. market with a mid-sized (small by U.S. standards) diesel powered pickup. They were unable to get it emissions certified (unwilling to cheat, I guess) and pissed off a bunch of people who had invested in dealerships when they pulled out. They build a nearly original Jeep under license, which they sell here as an off-roader.
Synergies with Aptera? I can’t think of anything, but they might have some money lying around.
About India’s lack of a charging infrastructure and Aptera’s suitability: I think it is precisely the lack of a charging infrastructure that could make Aptera ideal, due to its efficiency. A regional version equipped with a 30kW AC charger could charge faster than 400 km per hour off of any household plug along your route. Tight moving traffic would still be a challenge, though.
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As time goes by without a major investor, the Government Loan program looks to be the only viable path to production. These other tricks for funding are the equivalent of treading water. As I read it, the Government will pay for up to 80% of production startup cost if they believe there is a good chance of getting paid back. The big question is, will they fund a 3 wheel autocycle with many parts made overseas?
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Something else to keep in mind is that the Accelerator program (and presumably all other investing) is currently “paused” for non-accredited investors, which is why fundraising appears to be stalled out. Once those investments resume, I suspect there will be a surge in the numbers as people who were about to invest (or still considering it) prior to the pause all jump on board at once. The company will probably still need a large influx of capital to get the ball rolling, either in the form of the ATVM Loan getting approved or a Very Large Investor stepping up to the plate. That said, my doubts about Aptera reaching production have greatly diminished over last couple of months. Just a little more patience…
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Is there any information about the grant application to the feds?
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Assume nothing will happen before the end of the year – it takes several months for the initial process.
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Not sure this makes much diff in the grand scheme of things but:
“We are thrilled to announce that Aptera Motors has been granted a significant competitive advantage in its mission to revolutionize the mobility industry. The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) has awarded Aptera an exemption on taxes for $81 million in equipment purchases to outfit our state-of-the-art factory. This prestigious achievement provides Aptera with a unique opportunity to accelerate our efforts, drive innovation, and further solidify our position as a pioneering force in the electric vehicle market.
The Impact of the California Alternative Energy and Advanced Transportation Financing Authority
As a result of this accolade, Aptera will be able to reinvest the funds previously allocated for taxes into further developing our manufacturing capabilities. The $81 million tax exemption will enable us to acquire cutting-edge equipment, advanced technologies, and resources needed to optimize our factory operations and enhance the production of our groundbreaking EVs. “
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I think it’s great in terms of going much further in the future for the company. Perhaps not gonna affect much in the near term, aside from providing more for potential investors and buyers to consider.
In that regard, it’s huge for the prospects of building a second factory.
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Wow, that’s huge! Great to see this kind of support for Aptera!
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Just curious. Was it capped at $81 mil. because that is how much Aptera plans to spend on equipment made (or sold) in California?
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We should expect to see big news at the end of Q3 when Aptera is supposed to finalize that $20 mil investment which was originally to take place beginning of the year.
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That $20M was tentative, and seems to have disappeared from the most recent SEC filings.
It used to read this (14th June, form 1-A POS):
> On October 24, 2022, the Company entered into a non-binding term sheet with a potential investor. Under the terms of the term sheet the investor agrees to purchase 2,000,000 shares of a yet-to-be-formed class of preferred stock of the Company for $10.50 per share, with total consideration of $21 million. The terms of the preferred stock include granting the investor the opportunity to appoint one director as well as board observer rights. In addition, upon the achievement of certain milestones by the Company, the shares of preferred stock will be converted on a 1:1 basis into the Company’s Class A Common Stock. This financing is contingent on the completion of financial and legal due diligence and both parties agreeing on the final terms. There is no assurance that this financing will occur. If the financing does occur, the earliest it will occur will be in Q3 2023.
But in the updated filing (20th July, form 1-A POS again) that paragraph disappeared.
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Is there any way to “read the tea leaves” on past ATVM loans, in terms of how long between completed application and decision, or percentage of successful applications or any other info to judge Aptera’s likelihood of getting it? I’m taking the lazy approach, just asking the community instead of interrupting my work day to dig through the internet.
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I believe they were expecting to hear something last month.
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Last thing I saw was Bruce’s video from about a week ago. Just waiting (im)patiently for the official news!
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I guess I was hoping someone would respond with data, like “Here’s the average time from ATVM application to decision” or “Here’s the percentage of applications that get approved”. Having not heard that so far, I guess I’ll just wait quietly with the rest of the supporters….with fingers crossed.
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Given the varying levels of complexity to individual submissions, it would be hard for anyone outside the department to shed meaningful light on those stats. My understanding was they were expecting to get an indication last month. The primary driver to getting the loans lies in the probability they will get paid back. So, it would not be a good sign if it drags on a long time.
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I think that the Tesla ATVM loan application took just over a year?
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3 to six months, during that time the company that has applied must answer all manner of questions, and then only around <25% in the past have qualified, however that was before the large amount was added to the pot, and more broad language was added to accommodate the “green agenda” of the IRA act which gave the program much greater funding. For build out of the grid, for greater battery development, carbon capture, Yada,Yada,Yada. When you focus on the area which Aptera fits into, they check all the boxes, and three-wheelers are no long banned, as they were in the original legislation. The program has changed, and they do not want anymore Solenders again. That was a solar company that got huge amount of money and then were gone. So, the program has morphed, a great deal, more checks, more paperwork, more questions and it takes too long.
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All great people and companies go through a time of trial, this is it for Aptera. The next few months will tell what course Aptera will take. The quarterly meeting next week will let us know where we stand. But the outcome is still unknown.
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Agreed a time of trial for Aptera and that the next few months will determine which way the tide will flow for them and us. I don’t expect them to reveal anything strategically confidential in the webinar for fear that it will be leaked. Still, I appreciate Aptera taking the time and making the effort under stressful conditions with so many things on their plate.
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Such damn gloom and doom.
As I understand the circumstance, the accelerator program provides more than enough financial credibility establishing credible demand.
I mean, Jesus … the task of the accelerator program is to get 2000 people to commit to buying 2000 vehicles by not reserving the vehicle, but by investing $10,000 in the company to secure that location.
Now, couple that with the assertion of Sandy Monro that Aptera, in one assembly plant alone, can break even producing as few as 1,500 Aptera in a year.
This fact comes from the history of Monro’s lean manufacturing concept that he pioneered with the Dodge Viper production line where parts came in as subsystems and the facility was designed to break even at between 1,500-2000 vehicles a year.
That you could produce up to 20,000 of them in a year’s time is the upside of the investment.
The point is, once the dies are cut and the bodies available, and production and inventories are priced, the first 2,000 vehicles (accelerator) vehicles will and can be produced for a profit, fulfilling the financial requirements.
The proof is that 2000 people (at present 1,500 +/- ) have not made a formal deposit of ten thousand dollars on a vehicle, but instead have just invested ten grand in the company with no recourse if they fail to produce … which pretty much trumps any formal reservation system in establishing intent. I really can’t think of a stronger form of expression of the interest in this vehicle.
In fact, I would almost wager that the government was asked about this back in the spring when the accelerator program was announced whether this would be an adequate expression of intent to buy the vehicle in terms of the government criteria and were told ‘yes’ it would.
I think the thing most of you folks just don’t grasp is how different it is from any other vehicle because of the way it is made. Sure the motors, batteries, solar panels and even the body, electrical elements, computer elements, etc. etc. are all mostly produced by third parties in large part because the magic is you can almost open an assembly facility in a closed walmart anywhere as long as you have the viking programmable platforms and that facility can probably break-even (profit) at an annual volume as low as 1500 vehicles. (Remember, this was the initial belief of Steve and Chris as to how this would roll out.)
My understanding (and correct me if I’m wrong) is that the initial construction loan asked for in this instance is enough money to buy parts for an initial run of 5000 aptera.
To me the rumblings about this whole issue is just a conservative knee jerk reaction to any gove’ment spending. I swear, the only thing they like about government spending is when they’re getting directly paid or when the budget for policing tax compliance is turned into another tax cut.
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Based on their recent financials we know they are in a world of hurt.
20.9m in cash, cash equivalents, and restricted cash.
Restricted cash is money spent or not allowed to be spent, that includes 3.6m in reservation fees and 2m to exit the Vista facility; elsewhere in the document they stated they paid the land lord 1.8m to settle the dispute so the other 200k is likely costs to move and such.
Their accounts payable ballooned by 4m in the first six months of the year to 6.5m so given the typical 90 term most of these agreements tend to have that means we go from 20.9m to 15.3m and remove another 6.5m to pay vendors what is already due.
For the math wise that means pending new investment money they only have 8.8m in cash and cash equivalents meaning they likely have very little. They shed nearly 2m in payroll in the first six months of the year as compared to the same period in 2022.
So with that little cash they need to resolve purchase orders sufficient to complete a minimum one Delta model by December, granted they have never hit a December deadline ever.
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This reply was modified 6 months, 2 weeks ago by Chris Ho.
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This reply was modified 6 months, 2 weeks ago by
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I’ll happily take a gamble if Aptera cuts us a deal: let’s say 4,000 LEs out the door discounted to $20,000 if paid in full upfront by EOY 2023 (that’s $80 million in escrow to show income to the Feds for the ATVM Loan Application).
Let’s face it, stock is worthless unless they IPO. And with dilution it may not hold long >$10.50.
We are better off with car purchase funds in escrow. They can’t use the money to pay bills, like they do daily with our stock investments. It’s deferred income. The purchase money is safe at an attorney’s escrow bank account. It won’t disappear like our stock funds do now.
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New here and trying to come up to speed, in looking through the info available is it true that Aptera can not do a low volume assembly strategy to generate revs? I would like to hear about any path to low volume assembly even if it makes the cost required for the car higher to make it work, unless the price point needs to be $200k or something equally not feasible.
All I have been able to find is aptera needs $50m in one traunch or bust, which is a big ask without having ex-fortune 500 CEOs or billionaires on your board, but now especially difficult in the backdrop of funding mainly looking to throw money at anything AI. Please don’t misinterpret, I want to be supportive and actually invest to do so, but trying to see if there is a plan to start selling product that is “bootstrap” capable?
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This reply was modified 6 months, 3 weeks ago by Pat Fogarty.
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I think they could do a low-volume process, if need be. The above post by @george-hughes is a great example, IMO. It’s nice to see others taking a more rational approach to what may be possible or needed.
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low volume? How low is low? It is a silly concept as their proposed production rates are already low by industry standards.
The issue trying to play the slow game is they have declared a two year break even requirement with 17 point profit. So lets say for fun the LE is 50k so they would after all costs are factored in other than GS&A the get by with 8,500 per car profit (this is parts, labor, and facility costs, all baked in for actual production). Their current GSA is nearly 3m a month or 36m a year – this is the cost of running the company – not producing. It has been as low a 2m so lets do 24m a year, so just shy of 3,000 cars per year minimum to not lose money. Again I am pulling numbers out of the air…but the SEC docs are there so we know what their overhead has been without production.
So exactly what do people expect slow production to be???? Forty per day was their goal but that was before most of the work was done in Europe. Max of 10000 a year for one shift. Assuming Elaphe, CPC, and others keep up. The slower you go the more your labor per unit is going to be.
What do you think the minimum order from CPC is to start production? 100? 200? 500? How long will it take CPC to finish the parts, assemble the bodies, install glass, seals, doors, and chassis and suspension components and whatever else they decide is being done in Europe? A recent AOC interview he waffled on the motors being installed at CPC. So now we have two effective assembly lines one delayed by shipping times from Italy to the California. Packing these in standard shipping containers will be such a joy. The cost to cross the oceans might not be horrible, maybe five or six in a large shipping container but then once at dock it has to be delivered under a different contract. Doesn’t that sound like fun? All that wonderful diesel trucking and shipping to get your green car to you. If they keep the wheels off a HC container might carry eight or more but do you see the new logistics hell they have created?
The real danger is if the LE crosses the 50k mark. The recent AOC interview had a lot of red flag comments from Chris on pricing and why they cannot predict it even after previously claiming 92% of their supply chain is settled. It was buzzword bingo but go listen for yourself – he is preparing everyone for a much higher price and it is because you should be glad to have the chance to show you care about the environment
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This reply was modified 6 months, 3 weeks ago by
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It would be possible for Aptera to obtain the ATVM loan if they cannot show viabilty as is by being taken under the wing of an existing (larger) company. Keeping my fingers crossed the loan is approved, because they deserve it.
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At what point can Aptera start taking deposits on it’s reservations ? I suspect that could give them the $50 MIL they need for vehicle builds. After validation, tweaks and concrete pricing ? I for one am prepared to place a 10% deposit. If memory serves me, they couldn’t previously do it because deposit funds couldn’t be used for equipment, but once builds are started 🤔
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The pace of deliveries (and the corresponding deposits) will likely not be known until maybe 1-2 months out from first delivery. Aptera may not ask for deposits for more than the first months’ worth of deliveries, which at the beginning could be less than 100 vehicles.
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I was thinking maybe April/ May of 2024 (think Chris said first deliveries early summer ?) after validation and final cost analysis. Sounds like I’m not the only one with those thoughts🤞
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This reply was modified 5 months, 3 weeks ago by Scott Holmes.
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This reply was modified 5 months, 3 weeks ago by
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Here’s some financial info from Aptera at the end of 2022.
10.8 Million in cash and cash equivalents at the beginning of 2023.
Money spent 2021 = 96.5 million. 2022 = 82.3 million
In Feb. 2023 California granted 21.9 million with certain restrictions including milestones and matching funds. Accelerator program at 22.81 million today, some of that from past years, not 2023.
Where is the money coming from to continue? They will need to find funding soon.
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The semi-annual report, which has the latest financial info was posted just 6 weeks ago: sec.gov/Archives/edgar/data/1786471/000110465923105367/tm2327289-1_1saa.htm
With the announcements regarding 4 paths to production funding, and Accelerator investments still trickling in, I’m not that concerned about the current status and will wait for the next filing or any updates they happen to release.
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So yes they posted their numbers, near the last legal day they could as always.
We can clearly see they do not have the money. Accelerator and Republic investing at most has pumped a million a month since the start of July, there was that unusual 500,000 Class A buy which is a superior class to any Republic or Accelerator investor.
They cleared the period stating 20.9m cash/restricted. Restricted was 5.6m which includes reservations and cost to vacate Vista; both Aptera costs and penalty paid to land lord. That leaves 15.3 to play with of which Accounts Payable was already at 6.5m so we can assume that is paid in this six months. They are down to 8.8m assuming no accrued liabilities need to be paid and those are 3.6m
What is key though is they only had 15.3 to play with because of shuffling compensation off to stock based which they show as 13m in total. Can they do that again this six months? They average a high 30m per six month period. Let us assume 6m from investment to pad but the issue here now is ramping up to produce at most 16 PI vehicles is not going to make their numbers smaller.
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I would agree that past production announcements would suggest a reasonable amount of skepticism on current statement about production. But, Aptera is a start up and hard to predict.
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True, given claims for future production that hasn’t bared results are actually now in the past. Body panels are being finalized as we are communicating right now. Vendors for APTERA are lined up with final specs and momentum is there for final assembly.
Cash, although not there In abundance, is enough to keep the ball rolling. If circumstances find APTERA without funds for planned full production, they will proceed with limited production.
Statements at face value doesn’t necessarily mean that what was said will always remain true. It’s always good to have a little skepticism, especially if you are an investor. Personally the last several months have eased any doubts I have had that APTERA would reach some sort of production. Momentum is a big force and it would be difficult to halt as it continues to grow speed.
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This reply was modified 5 months ago by John Voules.
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This reply was modified 5 months ago by
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I haven’t heard anything about the DOT grant Aptera applied for. Does anyone have any news?
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Are you referring to something different than the DOE ATVM loan program application? If that’s what you’re referring to, there’s no news that I am aware of.
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I think you are referring to the ATVM loan. After a long, quiet period, Chris was asked and surprisingly responded that this may come to fund future plants for expansion. I speculate that this meant the DOE was not going to grant them the money until they were a going business. The #1 consideration to get these loans is the probability to get the money back. I assume they felt Aptera is too much of a risk at this early stage.